| Asian rice prices continue to rise as market tightens in early 2024 Expect rice prices to rise right after Tet |
Indonesia to import up to 3.6 million tons of rice
Regarding imports, Indonesia - a major importer of Vietnamese rice - has just made a new move. According to the Vietnam Trade Office in Indonesia, on February 26, Indonesian Trade Minister Zulkifli Hasan announced that the Government of this country has just decided to increase the rice import quota in 2024 by an additional 1.6 million tons.
Previously, the Indonesian Ministry of Trade issued a rice import license for 2 million tons of rice in 2024. An additional import license for 1.6 million tons will be issued soon after completing some related administrative procedures. Bringing the total amount of rice to be imported in 2024 to 3.6 million tons.
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| Rice prices expected to rise again |
This is a record high since the country resumed rice imports in 2022 after a period of self-sufficiency. Compared to previous forecasts by world organizations, the newly announced rice import volume is also 600,000 tons higher.
The reason is that domestic rice production is lacking because the planting of the main rice crop of the year is delayed due to lack of water.
It is forecasted that the Indonesian Government will have to continue to open bids to buy more rice soon, in addition to the final bid at the end of January 2024 (in which Vietnamese rice exporting enterprises won bids to supply more than 300,000 tons). Therefore, Vietnamese rice exporting enterprises need to closely monitor market information and take advantage of opportunities to export rice to the Indonesian market in the first months of the year.
India maintains 20% tax policy indefinitely
In another development, India, the world's leading rice exporter, recently released two important announcements: extending the 20% export tax on parboiled rice indefinitely and inviting bids for 35,000 tons of 25% broken white rice (non-basmati).
Specifically, on February 22, India announced the extension of the 20% export tax on parboiled rice. Previously, on August 25, 2023, the country announced the imposition of a 20% export tax on parboiled rice, effective until October 2023 and then further extended until March 31, 2024. This time, the tax policy will be extended indefinitely.
According to India's rice export figures, the country exports 7-8 million tons of parboiled rice each year. The tax extension is aimed at ensuring food security and fighting inflation ahead of the upcoming elections.
Another notable policy is that India announced a tender for 35,000 tons of 25% broken white rice (non-basmati). It is known that this amount of rice is intended for export through the government channel that India committed to its partners.
Strengthening confidence in rice prices rising again?
In Vietnam, over the past week, export and domestic rice prices have continuously decreased, in which the export price of 5% broken rice has now dropped to 607 USD/ton.
However, according to experts, the above moves and other data show that although Myanmar and Cambodia are rice suppliers, their output is insignificant. Meanwhile, Thailand is suffering from severe drought. Therefore, it is likely that rice prices will increase again, but we should not expect prices to increase too much because rice is an essential food item that governments want to control prices.
Rice prices increase again According to the update of the Department of Agriculture and Rural Development of An Giang province on February 27, rice prices today have increased again by 50-300 VND/kg after a period of sharp decline. Specifically, OM 5451 rice is priced at 7,300 - 7,450 VND/kg, up 150 VND/kg; IR 50404 is priced at 7,200 - 7,350 VND/kg (up 50 VND); Dai Thom 8 fluctuates at 7,600 - 7,800 VND/kg (up 100 VND); OM 18 is priced at 7,600 - 7,800 VND/kg (up 100 VND); Nang Hoa 9 is priced at 7,500 - 7,800 VND/kg (up 300 VND)... |
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