India's 100% broken rice variety is different from Vietnam's. Therefore, India's lifting of the ban on 100% broken rice exports will not affect Vietnamese rice.
Reporter of Cong Thuong Newspaper had an interview with Mr. Nguyen Van Thanh - Director of Phuoc Thanh IV Production and Trade Company Limited (Vinh Long) about this issue.
- At the end of March 7 (local time), the Indian Government officially lifted the ban on exporting 100% broken rice. Will this decision affect Vietnam's rice export prices as well as rice exports, sir?
Mr. Nguyen Van Thanh: I think that the Indian Government's official lifting of the ban on exporting 100% broken rice will not only not affect Vietnamese rice, but we will even benefit.
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| India's lifting of ban on 100% broken rice exports will not affect Vietnamese rice growers |
Because now, along with exporting, from 2018 onwards, Vietnam has also imported rice from India, Myanmar, Pakistan, and Cambodia. This is not paradoxical but reasonable.
The reason is that Vietnamese farmers are gradually shifting to growing fragrant rice varieties with high added value. Meanwhile, to make vermicelli, cakes, and animal feed, low-priced, low-end rice is needed. Vietnam has to import broken rice from India or other countries to make up for the supply, both to maintain production capacity and to prevent Vietnamese rice prices from increasing due to supply and demand factors.
India's lifting of the ban on exporting 100% broken rice, businesses processing vermicelli, cakes, and animal feed buy at lower prices, making up for the gap in low-segment rice, so I think it does not affect the production activities of farmers, rice growers, or Vietnam's rice export prices.
- Currently, in the export categories of Vietnamese rice, there are 5% broken rice, 25% broken rice and 100% broken rice. So will Vietnam's 100% broken rice exports be affected by this policy?
Mr. Nguyen Van Thanh: Currently, Vietnam mainly grows fragrant rice varieties and high-quality rice. Vietnam also exports 100% broken rice, but Vietnam's 100% broken rice is different from India's 100% broken rice. Vietnam's 100% broken rice is a fragrant, sticky rice variety, and is used as edible rice.
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| Mr. Nguyen Van Thanh - Director of Phuoc Thanh IV Production and Trading Company Limited (Vinh Long) |
In the recent past, we have also exported quite a lot of this type of rice. In the company's bidding package, we are currently exporting about more than 100 thousand tons, this order is also all fragrant rice.
Vietnam’s 100% broken rice export market segment is also different from India’s. In fact, Vietnam’s 100% broken rice export volume in recent times has not been enough to meet market demand.
Currently, 100% broken rice accounts for about 15% of Vietnam's total rice volume. Of this, domestic consumption accounts for about 5%, the remaining 5-10% is exported. The amount of 25% broken rice exported from Vietnam is also gradually decreasing, with the majority being 5% broken rice.
As for 5% broken rice, there are currently 3 major segments. Of which, 10-15% is IR504 rice (low-grade rice) exported to Indonesia and Malaysia markets. We export about 1 million tons per year.
The second segment is fragrant, high-quality rice. Currently, this segment accounts for about 70-80% with rice varieties such as OM 5451, OM 18, Dai Thom 8. The main export market of Vietnamese rice is the Philippines, which is also importing mainly high-quality rice. In addition, other markets such as China and the Middle East also like this type of rice. However, the Middle East market segment is not large.
The third segment is Japonica rice and other specialty rice (4%) mainly consumed in Japan, Korea and other high-end markets such as the US and EU. Japonica rice currently has its own market niche, high demand, and very high prices. Meanwhile, with ST25 rice, we currently mainly export to China and the EU.
In these markets, Vietnamese rice is not competitive, because our rice varieties are very good. Thus, with Japonica rice and specialty rice, we have markets in the country, China, the US and the EU. The selling price for this rice variety is very good and does not decrease compared to other rice varieties.
- As you shared, India's lifting of the ban on 100% broken rice exports will not affect Vietnam's rice export prices. Since the beginning of the year, rice export prices have decreased, and the upward trend is still uncertain. So, has Vietnam's rice export price hit bottom yet, sir?
Mr. Nguyen Van Thanh: Has the price of rice hit bottom yet? In my opinion, it has. Because in the period 2020-2022, we also recorded the lowest export price of rice at this level. However, when entering 2023, when India issued an export ban, it caused the export price of rice in the world market to fluctuate greatly, from 38-45%, including Vietnamese rice.
In the context of domestic rice prices and export rice prices falling. Exporting enterprises also face certain difficulties. The capacity of enterprises is still limited, and the warehouse problem can only hold 7-8 million tons.
Meanwhile, most export enterprises do not have contracts. Only those export enterprises that have contracts can borrow money from banks and disburse within the limits stated in the contract and buy a lot of rice. For enterprises with weak finances, they also have to wait until they have contracts to buy.
Recently, the Government and ministries have paid attention to the issue of rice prices and export rice prices, removing difficulties and obstacles related to loan terms, limits, loan conditions and disbursement so that businesses can buy rice for people.
However, businesses in the Mekong Delta are still facing certain difficulties and limitations, including the issue of capital. Some businesses want to buy reserves but they do not have money, have limited limits, and do not have collateral, so disbursement is also very difficult. Commercial banks also want to disburse, but absorbing this capital is not easy, because of the problem of how to ensure compliance with the law.
Thank you!
| According to a report by the Ministry of Agriculture and Environment, in 2025, rice output is expected to reach 43.1 million tons, equivalent to about 27.4 million tons of rice (after processing and loss deduction). Of which, domestic consumption is about 21 million tons; production and processing is about 4 million tons; export is about 6-6.5 million tons; domestic reserves and trade are about 2.5 million tons. |
Source: https://congthuong.vn/gao-100-tam-cua-viet-nam-khong-du-de-xuat-khau-377538.html
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