Why does Vietnam import rice?
By: Date: 2021-01-11 Categories: Internationalfood Tags: ,
  (People’s Daily) Reuters recently reported that Vietnam’s import of rice from India has aroused widespread public concern. However, experts in the industry, enterprises and national management agencies believe that this is a normal event in international trade and there is no need to worry.

  Imported low-grade rice for processing
   Reuters News Agency published an article on Vietnam’s first import of rice from India in decades. It quoted Krishna Law, chairman of the Indian Rice Exporters Association, saying that this is the first time India has exported to Vietnam. Rice. As one of the strongest rice exporters in the world, it is really surprising that Vietnam imports rice from its big competitors. Some people even questioned with horror:Is the reason for this import due to the lack of rice in Vietnam?
  In an interview with reporters, agricultural expert Huang Zhongshui emphasized:”Rice import and export activities in international trade are normal.”
   Mr. Huang Zhongshui analyzed that Vietnam’s rice exports have achieved good results in 2020. It is worth noting that due to the effective implementation of rice structural adjustments in the direction of high-quality products, the price of rice in Vietnam has risen sharply, sometimes at US$505/ton, surpassing the price of rice in Thailand and usurping the world’s number one place. At the same time, domestic demand for rice used as raw materials for processed products such as rice noodles, rice noodles, and food for raising animals is greater. Mr. Huang Zhongshui pointed out:“It is normal to export high-value and high-grade rice to serve domestic demand, while importing low-grade rice as raw materials for the processing industry. There is no need to worry. This is not to mention the agricultural sector’s consumption this year and next year Or the forecast that there is no shortage of rice for export. This rice import activity does not mean that we have to import because of a lack of rice. The simple thing is that we have a demand for a certain commodity, so we import it.”
  Actually, the Ministry of Industry and Trade predicts that the structure of Vietnam’s rice exports is shifting towards fragrant rice and high-end rice with higher prices and added value. In addition, farmers and exporters are increasingly paying attention to improving the quality of rice, tracing the origin of the products, and facing the demanding standards of the European Union, South Korea, the United States and other markets.
   Therefore, Vietnam’s rice exports in 2020 are expected to reach 6.15 million tons, with an export value of approximately US$3.07 billion. Although the export volume fell by 3.5%year-on-year, the main reason was to achieve the national food security goal, the export volume rose by 9.3%year-on-year. The average annual export price was US$499/ton, an increase of 13.3%year-on-year, a record high in recent years. Growers bring huge benefits.
   praised this. At the same time, Fan Taiping, president of Zhongan High-tech Agriculture Co., Ltd., said that it is normal for Vietnam to import low-priced rice from India. Because the price of rice in India is cheap, the domestic demand for rice used as raw material is high. At present, the price of low-grade broken rice in India is lower than that of similar rice in Vietnam, and it can be used as a raw material for making rice noodles, pho and other products. The domestic demand for these products is great.
  Domestic rice supply meets consumption and export demand
  The Ministry of Agriculture and Rural Development believes that in 2020, various rice-producing regions in my country will announce a good harvest, with an output of nearly 43 million tons. In the dilemma of the continuous occurrence of natural disasters, due to the proactive and flexible adoption and adjustment of planting time, rice output has increased significantly. Therefore, although the rice planting area has fallen by 190,000 hectares, the grain output has still risen sharply. In 2020, the country will export 6.1 million tons of rice, with an export value of more than 3 billion US dollars, and the rest will be used to meet domestic consumption or processing needs.
   Ruan Ruqiang, director of the Planting Bureau of the Ministry of Agriculture and Rural Development, said that in 2021, we don’t have to worry about lack of rice. Because rice planting activities are still going on as planned. It is estimated that in January 2021, the paddy output of winter and spring rice will be about 1.2 million tons, which will meet the future domestic consumption and export demand.
   Regarding the situation of rice exports in 2021, Mr. Huang Zhongshui said that the Covid-19 vaccine was produced this year, and the increase in rice supply from various countries has caused Vietnam’s rice export volume and export value to be not as high as in previous years, but this is still Vietnamese agricultural, forestry and aquatic products The main export product in China.
   He also said that Thailand is currently launching a new type of rice that is more viscous than Vietnamese fragrant rice and has a better water absorption rate than ST25 rice. Its only weakness is that it is not as fragrant as ST25. This kind of rice is welcoming consumers’ favor, so if they can overcome the weakness in fragrance, this is a product that competes fiercely with Vietnamese rice. Therefore, in order to gain an advantage in market competition, Vietnamese companies should concentrate on high-end rice and should not worry about importing low-end rice from a certain country. (End)