Will world rice prices "heat up" again thanks to Indonesia?

On September 11, the world rice market website Ssricenews quoted an announcement from the Indonesian National Logistics Agency that the country will buy 300,000 tons of 5% broken white rice from Vietnam, Thailand, Pakistan and Cambodia.

World rice prices may rise again after Indonesia's move. (Source: Industry and Trade Newspaper)

The above information is expected to help rice prices increase again.

Earlier this year, Indonesia planned to import 2 million tons of rice to ensure national food security and cope with the El Nino phenomenon. However, they recently adjusted the target, increasing the total annual rice import volume to about 2.4 million tons.

According to Ssricenews update, by the end of July 2023, Indonesia had imported about 1.4 million tons of rice.

Experts say that with the news that Indonesia is opening this bidding package, the world rice market is likely to heat up again after about a week of price reduction.

Last week, rice prices in Asia "cooled down" when they adjusted sharply after a series of days at high prices.

Last month, Indonesia reached a contract to buy 125,000 tonnes of rice from Cambodia, including 25,000 tonnes of fragrant rice and the rest white rice.

Besides, Indonesia is also promoting rice purchase contracts from Myanmar, with an output of about 70,000-80,000 tons.

In recent years, Indonesia has tried to become self-sufficient in rice supply. However, from the end of 2022, due to an unusual drought, the country has been forced to import rice to ensure national food security.

From early September 2023, to cope with high rice prices, Indonesia decided to spend more than 500 million USD to implement a program to distribute free rice to the poor.

Source: https://baoquocte.vn/gia-gao-the-gioi-se-lai-tang-nhiet-nho-indonesia-241800.html