According to the latest announcement from the National Logistics Agency of Indonesia (Bulog), the country is increasing rice imports in August with a volume of up to 350,000 tons, the highest ever. This is an important opportunity for rice exporters, especially from Vietnam, in the context of the international rice market is having many fluctuations.
Indonesia has requested that 5% broken white rice be produced by 2024, with priority supplies coming from Vietnam, Thailand, Cambodia, Myanmar and Pakistan. The sudden increase in the tender from 320,000 tonnes to 350,000 tonnes is Indonesia’s response to missing its procurement target in July, when it only managed to buy around 200,000 tonnes despite a large tender.
Responding to reporters from Cong Thuong Newspaper, Mr. Nguyen Van Nhat, General Director of Can Tho Rice Export Joint Stock Company, commented: "Indonesia's increased invitation to bid for rice is a positive signal for Vietnam's rice export industry. In the bidding round last July, Vietnamese enterprises won the most bids with 7/12 lots, accounting for 185,000 tons of rice. This shows that Vietnamese rice still maintains good competitiveness compared to other sources. Although Vietnam's rice export price is currently the highest in the world, reaching 578 USD/ton, we believe that the increase in demand from Indonesia will create opportunities for us to continue exploiting this market."
Mr. Nhat also said that Vietnam's rice supply is currently limited because the summer-autumn crop is about to end and the autumn-winter crop does not have a large output. Therefore, rice prices will remain high, which may affect price competitiveness. However, the fact that countries like the Philippines also have large demand will help reduce price pressure.
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| Indonesia invites bids for 350,000 tonnes of 5% broken white rice to be produced in 2024. (Photo: stockbiz) |
In this context, Vietnamese rice exporting enterprises are being cautious in participating in bidding to ensure that they do not encounter the situation of "the more they sell, the more they lose". "We are carefully assessing the opportunities and risks before deciding to participate in bidding rounds, especially when the export price of rice is higher than that of other countries ," Mr. Nhat added.
According to the forecast of the Ministry of Agriculture and Rural Development, Vietnam will continue to have a successful year of rice export with the target of exporting about 7.5 - 8 million tons of rice and export turnover exceeding the 5 billion USD mark. Meanwhile, the world rice market in the last months of the year will continue to be vibrant, bringing many opportunities for exporters.
"We believe that with the quality of rice and export experience, Vietnamese rice will maintain its position and can meet the needs of large markets like Indonesia," Mr. Nguyen Van Nhat emphasized.
With the opportunities opening up, Vietnam's rice exports are likely to maintain strong growth momentum, meeting the increasing demand from international markets.
Source: https://congthuong.vn/indonesia-tang-moi-thau-350000-tan-gao-co-hoi-lon-cho-doanh-nghiep-viet-341225.html
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