On March 7, the Indian government unexpectedly lifted the ban on exporting 100% broken rice. This is another blow to rice exporting countries in the context of rice prices having fallen sharply in recent times.
VNA reporter in New Delhi interviewed Vietnamese Trade Counselor in India, Mr. Bui Trung Thuong, to learn about the impact of the above decision on Vietnam.
According to Mr. Bui Trung Thuong, there are two reasons why the Indian Ministry of Industry and Trade decided to lift the ban on exporting 100% broken rice. Firstly, the area of rice cultivation and rice production in India in the coming time are forecast to continue to increase compared to last year. Moreover, India's rice reserves are at a very high level and need to be released to make room for the new harvest season. Secondly, in recent times, the food security issue that India was previously concerned about has also disappeared.
Previously, in September 2022, India issued a ban on the export of 100% broken rice and in 2023 continued to issue a ban on the export of regular rice. Notably, after India banned exports, global rice prices increased sharply, from about 450 USD/ton to a peak of 700 USD/ton for 5% broken rice. However, recently, global rice prices in general have decreased sharply, in which 5% broken rice from Vietnam and Thailand has decreased by 38 - 45%. At its peak, the price of this item in Vietnam reached 680 - 700 USD/ton and has now dropped sharply to 390 - 400 USD/ton. This is an unprecedented large decrease.
Regarding this situation, Mr. Thuong said that the decrease in rice prices compared to the unusual peak increase of 700 USD/ton is normal and the current price of about 390 - 420 USD/ton is good for both exporters and importers. It is forecasted that in the coming time, rice prices will be maintained at the current level, and will not decrease further for a number of reasons. First of all, the total global rice volume this year is forecast to increase, even up to 10 million tons, while countries have recently used rice for many different purposes, not only for daily consumption, such as ethanol production, use in industries, etc. Besides, the demand for rice consumption will not change dramatically, about 50% of the global population still has the habit of using rice in daily meals.
In this context, Mr. Thuong made some recommendations for Vietnamese enterprises. Accordingly, enterprises should refer to India's method, focusing on developing high-quality rice varieties as well as the Indian Government's recent announcement of geographical indications to create a distinctive rice brand, building prestige in the world market to increase sales. In addition, Vietnamese enterprises must diversify markets or diversify sales methods (expanding private channels instead of relying solely on government channels for export). In addition, Vietnamese enterprises need to try to maintain their existing market share even in markets and territories where rice volume or export turnover is not high.
According to VNA
Source: https://doanhnghiepvn.vn/doanh-nhan/tham-tan-thuong-mai-viet-nam-tai-an-do-khuyen-nghi-cac-doanh-nghiep-gao/20250310103306501
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