First time in decades Vietnam started to buy food grains, especially rice, from India due to its attractive prices. ASEAN nation has started to import rice from India in spite of the fact that the country (Vietnam) is the third biggest exporter of rice in the world. India Rice Exports to Vietnam
Biggest exporter Vietnam why import rice from india?
- The ASEAN and Southeast Asian nations has begun to import rice from India because the local prices in the country jumped to the highest in 9-years due to Limited domestic supplies. This is mainly because Vietnam has begun to stockpile huge quantity of rice for future.
- Also, the Indian prices of rice are highly attractive. The huge price differences is forcing Vietnam Government to import rice from India.
At what price will Vietnam import rice from India?
The Indian traders are to export 70000 tonnes of rice at around $310 per ton to Vietnam. India is to export broken rice to Vietnam during January and February, 2021.
How is stockpiling of rice in Vietnam inducing rice imports from India?
- The COVID-19 pandemic has prompted Vietnam and other countries to stockpile rice. This is because the shrinking supplies of food grains are increasing concerns about food insecurity.
- Vietnam is planning to stockpile $270,000 of rice to ensure food availability amidst covid 19 supply chain disruptions worldwide. Thus, it is facing shortage and is relying on imports.
Why did the international market value of Indian Rice increase?
India is offering broken rice at $381 to $387 per ton. On the flip side, Vietnam is offering broken rice at $500 to $505 per ton. This attractive price of Indian rice has increased its demand from Asian and African nations. It is expected that the other Asian nations like Thailand are to shift towards India for rice imports.
Current scenario of paddy cultivation and exports in Vietnam
The total output of Vietnam in last year fell by 1.85 per cent compared to 2019. Also, the rice exports of Vietnam in last year have fallen by 3.5 per cent as compared to the year 2019.
India Rice Exports to Vietnam