India lifts export ban, Vietnamese rice will be affected more by price than quantity

The information was provided by Mr. Nguyen Nhu Cuong - Director of the Department of Crop Production (Ministry of Agriculture and Rural Development) - at the regular press conference for the second quarter of 2024 organized by the Ministry of Agriculture and Rural Development on the afternoon of June 28, in Hanoi.

India lifts ban on rice exports, price and quantity of Vietnamese rice exports will be affected

Sharing at the press conference, Mr. Nguyen Nhu Cuong said that according to the report of the Department of Agriculture and Rural Development of Hau Giang province, the 2023-2024 Winter-Spring crop experienced salinity on 2.2 hectares of salinity in Hamlet 9, Vi Thang Commune, Vi Thuy District. This also occurred in the Summer-Autumn crop and on this area, the locality is continuing to monitor and assess the damage.

Mr. Nguyen Nhu Cuong - Director of the Department of Crop Production shared at the press conference

Determining the cause, Mr. Cuong commented, this is a difficult problem, whether the impact of using sea sand leading to salinity in this area needs to be assessed systematically, comprehensively and with the participation of research agencies, state management agencies and scientists.

“For now, we have recorded salinity in this area. As for determining the cause, we are currently coordinating with local authorities and relevant agencies as well as scientists, but it will take time to draw a final conclusion,” Mr. Nguyen Nhu Cuong shared.

To prevent the impact of salinity due to the impact of sea sand (if any) on rice growing areas, the Ministry of Agriculture and Rural Development has directed the Department of Crop Production to issue Standards on land and water sources, in which, specific requirements are given on boundaries if units use sea sand for construction, to avoid salinity.

In the first half of 2024, rice exports reached 4.68 million tons (up 10.4%), worth 2.98 billion USD (up 32%).

Regarding the issue of how the 1 million hectares of high-quality rice project will impact the rice market from now until the end of the year? Mr. Nguyen Nhu Cuong informed that because this is a major policy, it is necessary to take cautious and appropriate steps. Currently, pilot models are being built in a few localities, on that basis, they will be deployed widely. Therefore, the project will not have any impact on the rice market from now until the end of the year.

Regarding the content, if India lifts the ban on rice exports, how will it affect the Vietnamese rice market? Mr. Nguyen Nhu Cuong said that this market currently accounts for about 40% of the world's rice exports, so India's policy moves will have an immediate and strong impact on rice exporting countries in the world, including Vietnam and Thailand.

For Vietnam, it will affect two issues: the import demand in terms of quantity from partners and the export price of rice. Mr. Cuong commented that if the ban on rice exports is lifted, the most obvious impact will be on price. As for quantity, with current demand and world rice production, the impact will be less.

Rice exports have earned 2.98 billion USD

According to the report of the Ministry of Agriculture and Rural Development, in the first 6 months of the year, the whole country cultivated 5.03 million hectares of rice, an increase of 0.9% over the same period last year. As of June 28, the whole country had harvested 3.48 million hectares of rice, an increase of 0.5%; the average yield was 67.1 quintals/ha, an increase of 0.7 quintals/ha; the output on the harvested area reached 23.3 million tons, an increase of 1.6% over the same period last year.

Mr. Phung Duc Tien - Deputy Minister of Agriculture and Rural Development informed at the press conference

In the first 6 months of the year, rice exports reached 4.68 million tons (up 10.4%), worth 2.98 billion USD (up 32%). Mr. Phung Duc Tien - Deputy Minister of Agriculture and Rural Development commented that at this rate, rice exports will reach 8 million tons.

According to Mr. Phung Duc Tien, the total export turnover of agricultural, forestry and fishery products in the first 6 months of the year reached 29.2 billion USD, an increase of 19% over the same period in 2023. Of which, the main agricultural products group was 15.76 billion USD, an increase of 24.4%; main forestry products were 7.95 billion USD, an increase of 21.2%; aquatic products were 4.36 billion USD, an increase of 4.9%; livestock products were 240 million USD, an increase of 3.8%. Production inputs alone were 904 million USD, down 1.8% and salt was 2.3 million USD, down 1.7%. From the results achieved in the first 6 months of the year, it is hoped that this year, the export turnover of agricultural, forestry and fishery products will reach 54 billion USD.

Regarding the tasks set for the agricultural sector in the last 6 months of the year, Mr. Phung Duc Tien said that the Ministry will focus on disbursing public investment, focusing on irrigation infrastructure, natural disaster prevention, logistics, fisheries, forestry, and aquaculture; science and technology need to be pioneers; promoting processing and deep processing, natural disaster prevention, epidemics, etc.

With comprehensive strategies for livestock, aquaculture, crop cultivation, and forestry being implemented, Mr. Phung Duc Tien expects the growth rate of the agricultural sector to be maintained, with each quarter increasing higher than the previous quarter and each year increasing higher than the previous year.

Source: https://congthuong.vn/an-do-go-bo-lenh-cam-xuat-khau-gao-viet-se-chiu-tac-dong-ve-gia-nhieu-hon-luong-328905.html