India considers restricting rice exports

According to Bloomberg, India is considering further restrictions on rice exports, and this information is particularly interesting to market observers because Bloomberg was the first to report that India was planning to ban rice exports. The ban was officially announced on July 20.

Global rice prices have surged following India's export ban.

According to Bloomberg, the imposition of export tax on new parboiled rice is under review, no decision has been made. If this information becomes reality, it will continue to tighten global rice supply.

Previously, on July 20, India issued a ban on rice exports, pushing global rice prices to a record high since 2008 because the country is the world's leading rice supplier with a 40% market share, followed by Thailand and Vietnam.

With India's ban on rice exports, global rice export prices have been rising steadily. Last week, export prices were adjusted down slightly, but have increased again since the beginning of this week.

Specifically, according to the Vietnam Food Association, yesterday (August 21), Vietnam's rice export price was adjusted up by 10 USD/ton compared to last weekend.

Accordingly, the price of 5% broken rice in Vietnam is currently at 638 USD/ton. With the current increase, the price of Vietnamese rice continues to be the highest in the world, being 10 USD/ton higher than that of Thailand (the same type of rice in Thailand is currently at 628 USD/ton) and 50 USD/ton higher than that of Pakistan (rice of this country is being offered at 588 USD/ton).

Explaining the reason why rice prices rebounded after a sharp decrease last week, experts said that because Vietnam is at the end of the summer-autumn rice harvest, the output is not much.

In addition, according to Mr. Nguyen Van Thanh, Director of Phuoc Thanh IV Production and Trading Company Limited, it is predicted that India will continue to maintain the ban on rice exports in the coming time. Meanwhile, the demand for purchasing and storing food of countries continues, thereby affecting and causing the global rice market to continue to fluctuate.

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