India’s Rice Exports to Vietnam in Trouble; Prices Hit a 4-year low

• With the new crop arriving soon and the domestic prices falling, the Importers in Hanoi, Vietnam are asking for huge bargains.

• India’s Export prices went down to $354-358, the lowest in 4 years.

Rice is one of the top agri- export commodity of India but recently, Indian rice exports have dropped to their lowest in four and a half years this week due to lesser demand and logistical bottlenecks. India is one of the top exporters of 5% broken parboiled variety of rice; the quotes of which fell to $354 to $358 per tonne from last week’s $361 to $366 a tonne. 

Meanwhile the Indian rice export consignment to Vietnam is in trouble with importers in Vietnam are bargaining hard for discounts and threatening to not buy the consignments. 

Although Vietnam is the second largest Rice exporter, it imports rice from India for making wine and feed for the first time in decades last fiscal. If the experts are to be believed, Vietnam bought rice from India and sent it to China, which also imported 3.3 lakh tones valued at Rs 756.20 Crore directly from India during the last year. 

India’s Rice Production and Export Scenario: 

Indian farmers have planted rice on 26.5 million hectares of land until July 2021 which is lower than the previous year. Traders said supply remained unchanged, while higher shipping costs have hurt export prospects despite low prices. India exported 2.93 lakh tones of rice valued at Rs 658.43 Crore last fiscal to Vietnam. 

An additional 1.5 lakh tones of rice valued at Rs 377.46 Crores were exported in April this year to Hanoi. 

During the last 2 fiscals, Indian rice has recorded record productions during the last two seasons (June – July). According to Ministry of Agriculture and farmer’s welfare, rice production in 2019-20 was 118.87 million tones and 120.32 Million tonnes in 2020-21. 

Thailand’s 5% broken rice price is quoted at $380 per tonne. While the prices of Vietnam’s 5% broken rice is quoted at $390 per tonne. 

Stay tuned to Krishi Jagran for such commodity updates!