| Strengthening trade promotion in Senegal Senegal, a major broken rice import market in Africa |
According to the Vietnam Trade Office in Algeria and Senegal, since India issued a rice export restriction order, the price of this grain in the world has been constantly increasing, affecting the Senegalese rice market. In the capital Dakar, a 50 kg bag of broken rice costs 25,000 CFA Francs (equivalent to 41.28 USD).
Recently, Mr. Abdou Karim Fofana, Minister of Trade of Senegal said that for several weeks now, rice prices have been increasing and the measures issued by the Senegalese government since November 12, 2022 to reduce the price of common broken rice from India and Pakistan have not been effective. The price of Indian rice is not as high as that of Pakistani and Thai rice.
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| Senegal seeks new rice sources besides India. Illustrative photo |
Meanwhile, the price of rice set by the Senegalese Government is 325 FCFA/kg (0.54 USD), equivalent to 16,250 FCFA (26.84 USD/50 kg bag). In the international market, rice prices are at risk of increasing further.
"In March, we may not have enough rice because it depends on the timing of India's rice exports. During this time, we need alternative rice from other countries with the same quality. That is Vietnam, the United States and Pakistan," Commerce Minister Sengal emphasized.
In February 2024, on the sidelines of the 13th Ministerial Conference of the World Trade Organization (MC13) held in the United Arab Emirates (UAE), Mr. Fofana had discussions with his counterparts from India, Thailand, Pakistan and Cambodia on facilitating rice supply to this country.
Pakistan is emerging as a potential rice exporter.
Pakistan is stepping up to fill the void left by India (40% of the world's rice export market). Thanks to this year's bumper crop, rice exporters have begun to expand their presence in new markets. "Pakistani rice has increased its penetration in several African countries and has received many orders," said the chairman of the Pakistan Rice Exporters Association.
Pakistan currently exports broken (non-basmati) rice mainly to Indonesia, Senegal, Mali, Ivory Coast and Kenya. According to the Pakistan Rice Exporters Association, Pakistan’s rice exports increased in the seven months leading up to January 31, 2024, due to a bumper crop and high prices.
India has traditionally offered broken rice at a lower price, i.e. below $300 per tonne, than Pakistan. For instance, a year ago, Pakistan offered 5% broken rice at around $640 per tonne and parboiled rice at around $680 per tonne while India offered $465 and $486 per tonne, respectively.
Pakistan’s rice exports to Senegal have increased from $660,000 to $82 million in 2023 following India’s restrictions on rice exports. “Senegal’s objective is to have enough rice in the domestic market, regardless of the purchase price, and we have to work on this every year,” said Senegal’s trade minister.
Senegal's rice import demand
According to the Senegalese Statistical Center, in 2023, this West African country imported 1.3 million tons of rice, worth more than 500 million USD. In addition to serving the domestic market of more than 18 million people, Senegal also imports rice for re-export to neighboring countries such as Mauritania, Guinea-Bissau and Gambia. In 2023, Vietnam's rice exports to this market reached 12,392 tons, worth 5.35 million USD (+215%).
In the first two months of this year, according to the General Department of Customs, our country exported 414 tons of rice to Senegal, with a turnover of 307,820 USD. Vietnam has also given Senegal a draft Memorandum of Understanding on rice trade and is waiting for your response.
Taxes related to rice imports into Senegal within the framework of the common tariff of the West African Economic and Monetary Union (UEMOA) include: white rice, brown rice, import tax is 12.7%, VAT is 18%; broken rice, import tax is 12.7%, VAT is 18%; other types of rice, import tax is 12.7%, VAT is 18%.
In early 2022, in the face of rising food prices, to maintain people's purchasing power, the Senegalese Government introduced a series of measures, including eliminating VAT on imported rice and reducing import taxes on broken rice and regular rice from 12.7% to 2.7%.
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