Vietnam Youth Daily reported on January 6 that Vietnam and India signed a 70,000-ton rice purchase contract, which is the first time Vietnam has imported rice from India in decades.
Reuters quoted Indian food market analysts as saying that Asian rice supplies are scarce and low-end rice production declines. Rice prices may rise sharply in 2021, forcing buyers who previously imported rice mainly from Thailand and Vietnam to turn to India. The 70,000 tons of 100%broken rice imported by Vietnam from India is expected to be delivered in the first two months of this year at a FOB price of approximately US$310/ton.
reported that low-end rice in India is currently much cheaper than Vietnam. The price of 5%broken rice in Vietnam is about US$500-505/ton, much higher than the price of similar rice in India of US$381-387/ton. According to Nguyen Van Don, manager of Vietnam Enterprise Viet Hing Co., Ltd., there is still a large demand for low-end cheap rice in Vietnam, which is mainly used to make rice noodles, vermicelli, pho, livestock feed, etc. Nguyen said that Vietnam has achieved success in improving rice varieties in recent years, significantly reducing the planting area of low-end rice, and low-end rice production has been declining. In 2017, Vietnam’s low-end rice production accounted for 70%of the largest rice production. In the past two years Production has dropped to 50-60%, and currently only 10-15%. Ruan believes that”Importing broken rice is completely reasonable. It is currently difficult to buy broken rice in the Vietnamese market.”
According to information from the Ministry of Agriculture and Rural Development of Vietnam, the structure of Vietnam’s rice export has changed, and export prices have continued to rise. In 2012, Vietnam exported 7.7 million tons of rice, with an export value of 3 billion US dollars. In 2020, Vietnam’s rice export volume was only 6.2 million tons, but the export value was the same as before. In the next few years, the Vietnamese rice industry will continue to develop in the direction of increasing the value of rice, in order to bring better income to rice growers and improve the quality of Vietnamese rice.