Indonesia imports extra 1.5 million tonnes of rice from Vietnam, Thailand
Published on: October 16, 2023.
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Indonesia Looks to Việt Nam and Thailand for Major Rice Import
Strong and reputable rice suppliers in Việt Nam and Thailand have been shortlisted by Indonesia for their upcoming procurement of 1.5 million tonnes of rice. This has been confirmed by Arief Prasetyo Adi, Indonesian Acting Minister of Agriculture, following the Indonesian President Joko Widodo’s declaration of the country’s additional need for national rice reserves.
As Indonesia grapples with a shortfall in domestically produced food due to El Nino’s impact, Việt Nam’s key role as its rice supplier underlines the quality and reputation of Vietnamese rice. The purchase requirements come on top of Indonesia’s imported rice reserves reaching 2 million tonnes since the beginning of the year.
The necessary permits for importing the additional 1.5 million tonnes of rice are in place, paving the way for the procurement to commence by end of this month.
President Joko Widodo, in a recent cabinet meeting, declared plans to curb price hikes in food items including corn, sugar, and rice, by enhancing the import count. Following the meeting, Zulkifli Hasan, Trade Minister, disclosed potential imports involving 250,000 tonnes of corn and possible sugar imports once prices are down. He further observed that sugar import registrations currently cover only 30% of the granted import quota.
Ongoing Vietnamese Rice Exports Earning Accolades
Year to date, Việt Nam’s rice exports to Indonesia have been significant, showing a 17.7x increase in quantity and 19.2x increase in value. Specifically, in the initial three quarters of the year, Indonesia imported 884,177 tonnes of rice from Việt Nam, valued at US$462 million.
The overall export turnover for Việt Nam, covering different goods to the Indonesian market within the first nine months, hit a value of $3.79 billion – an 11% growth compared to the same timeframe in the previous year.
The Việt Nam Trade Office recommends that local rice export businesses should closely monitor the market situation, evaluate opportunities and risks, and shape clear transaction plans to exploit this opportunity, while ensuring fair prices for farmers. They also advise businesses to plan effectively to minimize potential risks related to delivery, payment, and pricing in the current global trade situation.
