Here is a good news for all the Indian Rice exporters which will help in increasing their income.
Vietnam imports Rice From Indian Exporters
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| Rice exporter |
Vietnam, the world's third-largest exporter of rice, has
begun buying grain from Indian Exporters for the first time in decades after local
prices rose sharply in nine years among limited domestic items, four industry
executives told Reuters.
The acquisition highlights the consolidation of goods in
Asia, which could increase rice prices by mid 2021 and even force traditional rice
buyers from Thailand and Vietnam to switch to India - the world's largest
exporter of grain.
Indian traders have been contracted to export 70,000 tonnes
of 100% broken rice in January and February to ship for about $ 310 per ton
free (FOB), industry officials said.
"First we ship to Vietnam," said B. B. Krishna
Rao, president of the Rice Exporters Association, told Reuters on Monday.
“Indian prices are very attractive. The large price difference makes exporting
possible. ”
Fixed imports and continued Filipino imports have increased
the price of rice exports to Vietnam to a maximum of nine years.
5% Vietnamese broken rice is priced at about $ 500- $ 505
per ton, which is very high compared to the Indian prices of $ 381- $ 387.
Shortages will increase concerns about food insecurity with
sub-Saharan Africa among areas where demand for imports has risen due to part
of the population growth.
Chronic and severe hunger is on the rise, affecting
vulnerable families in almost every country, as the COVID-19 epidemic reduces
income and disrupts supply chains, according to the World Bank.
Retention
Traders say the global epidemic has also led to Vietnam and
other countries storing rice.
Vietnam announced last year that it would store 270,000 tons
of rice to ensure food security amid the disruption provided by the coronavirus
chain worldwide.
Vietnamese traders say rice from India has been stored in
state reserves since 2016/17 and its cheap price shows a low level.
"The quality of the rice is so low that it is not
suitable for human consumption, but only for the production of animal feed and
beer," said Ho Chi Minh City-based rice seller.
Vietnam's total paddy production in 2020 dropped by 1.85% to
42.69 million tons, equivalent to 21.35 million tons of rice, initial data from
the state General Statistics Office showed.
Exports of rice in 2020 were expected to decrease by 3.5% to
6.15 million tons.
Strong demand from Asian and African countries has also been
raising prices for Indians but they are still highly competitive due to the
large number of shares, said Nitin Gupta, Olam India's vice president of rice
business.
Vietnam can make more purchases as long as price differences
still exist, Gupta said.
In December, China's largest rice importer began buying
Indian rice for the first time in at least three decades due to tightening
imports from Thailand, Myanmar and Vietnam and the offer of significantly
reduced tariffs.
By 2020 India has exported 14 million records of rice,
temporary information from the trade department has shown.
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