India officially returns to the rice export race, Vietnamese rice price is still the highest in the world

According to the rice industry report of the Institute of Policy and Strategy for Agricultural and Rural Development (Ministry of Agriculture and Rural Development), on September 28, 2024, India officially lifted the ban on exporting non-basmati white rice. This will promote more abundant world rice supply.

According to a document provided by SSRicenews, Mr. Santosh Kumar Sarangi, Director General of the Directorate General of Foreign Trade under the Ministry of Commerce and Industry of India, signed a decision on September 28, 2024, to lift the ban on the export of non-basamati white rice. However, the condition is to set the export floor price for this item at $490/ton.

Notably, a day earlier, the Indian government also reduced export tax from 20% to 10% on basmati rice.

"India's ban on exporting non-basamati white rice was imposed in July 2023. Since then, world rice prices have been on a feverish streak that has lasted until now, so India's resumption of exports will help to ensure abundant supply and cool down the market in the coming time," said a newsletter from the Institute of Policy and Strategy for Agricultural and Rural Development.

India officially lifts ban on non-basmati white rice exports. Photo: TL

As of September 1, 2024, the rice stock at the Food Corporation of India stood at 32.3 million tonnes, up 38.6% from a year earlier, prompting the government to ease restrictions on rice exports. The country is also in the midst of its biggest rice harvest of the year.

India's lifting of a ban on non-basmati white rice exports will boost global supplies, forcing major rice exporters such as Pakistan, Thailand and Vietnam to cut prices to compete, Reuters reported.

According to the Bangkok Post, at a conference in mid-September, the leader of the Thai Rice Exporters Association (TREA) predicted that Thai rice exports would face difficulties in the final months of the year because India lifted export restrictions. The difficulties could last into 2025, causing Thai rice exports to fall to 7-7.5 million tons. In fact, the price of 5% broken rice in Thailand was $598/ton in early September, then dropped $28 to $570/ton by the end of the month.

Thai Deputy Minister of Commerce Suchart Chomklin recommended: Businesses need to promote the domestic rice market and increase trust among trade partners about Thailand's policies on the development of rice and rice products.

According to the Vietnam Food Association, Vietnam's rice export price is still the highest among rice exporting countries. Specifically, Vietnam's 5% broken rice price is at 557 USD/ton, while Thailand's rice price is 540 USD/ton, and India's 5% broken rice price when returning to the race is at 491 USD/ton.

Recently, Vietnam continued to win bids to supply rice to Indonesia. Specifically, in Indonesia's September 2024 rice tender with a record quantity of 450,000 tons, Vietnam won 2 bids with a quantity of nearly 60,000 tons. This is the lowest number of bids compared to previous tenders of Indonesia, because Vietnam does not have much rice left to export.

The September bidding round in Indonesia was divided into 15 lots. This time, not many Vietnamese enterprises participated; only the Northern Food Corporation (Vinafood 1) and King Green Company. As a result, King Green Company won the bid for 2 lots with a quantity of nearly 60,000 tons, the winning bid price was 548 USD/ton (C&F price - delivered at the port of Indonesia). The lowest price in this bidding round belonged to a Myanmar enterprise with the price of 547 USD/ton.

Many experts say that India's return to the rice export race could make it more difficult for the rice market to flourish in the final months of the year due to increased competition.

Source: https://danviet.vn/an-do-chinh-thuc-quay-lai-duong-dua-xuat-khau-gao-gia-gao-viet-nam-van-dang-cao-nhat-the-gioi-20241002072323853.htm