India tightens rice exports, will Vietnam be an alternative source?
Published on: September 23, 2022.
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India, the world’s largest rice exporter, has recently tightened its supply to the world market.
Accordingly, this country banned the export of broken rice and imposed an export tax of 20% on some types of rice such as paddy, brown rice and other rice types except parboiled rice and basmati rice. The decision takes effect from 9/9.
India now accounts for about 41 percent of total global exports and supplies more than 150 countries, according to the US Department of Agriculture. Therefore, this tightening move is widely believed that Vietnam’s rice industry will benefit because customers around the world find alternative sources of supply.
Vietnam ranks third in the world in terms of exports (after India and Thailand), accounting for about 7.8% of global trade.
Currently, Vietnam’s rice exports are still favorable in the context of a complicated global food crisis and the price of this commodity is also increasing sharply.
According to the General Department of Customs, accumulated from the beginning of the year to mid-September, Vietnam exported more than 5 million tons of rice, worth 2.44 billion USD, up 19% in volume and 8.6% in value. .
According to some large rice exporters, Vietnam will not directly benefit from India’s tightening of export activities, but will instead benefit indirectly from the increase in world rice prices.
Because, the item that India banned from exporting rice is 100% broken rice, while this is not Vietnam’s strength. According to data from the US Department of Agriculture, India currently supplies up to half of broken rice for the world, and Vietnam even has one of its big “customers”. Broken rice is mainly used as animal feed, or for brewing beer, making vermicelli and pho.
“Recently, China has come to Vietnam to find an alternative supply to India, mainly 100% panels. However, the amount of broken rice produced by Vietnam is very small, but mainly high-quality fragrant rice,” said Mr. Pham Thai Binh, General Director of Trung An High-Tech Agriculture Joint Stock Company (Code: TAR) shared with people. write.
As for high-class basmati rice and parboiled rice – the segment that directly competes with Vietnam’s fragrant rice, India still exports normally. At the same time, these two types of rice also account for over 50% of the proportion of rice exports of India.
