Indonesia Begins Bidding for 543.000 Tons of Rice, Anticipating Rise in Rice Export Prices
Published on: December 25, 2023.
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Export Rice Prices
Last week saw fluctuations in the prices of exported rice, with Thai prices decreasing while Vietnamese prices remained stable at a high level. Let’s take a closer look at the details.
Cooling Down of Rice Prices
Recent data from the Vietnam Food Association (VFA) shows that rice export prices from various suppliers, including Vietnam and Thailand, have been decreasing this week.
In particular, the price of Vietnam’s 5% broken rice has dropped by $5 per ton to $658. On the other hand, Thai rice of the same quality has decreased by around $9 per ton, reaching $623.
Pakistani rice prices, however, have remained unchanged at $598 per ton.
Decreased Rice Export Prices
Although rice prices have cooled down in recent times, they still remain significantly higher compared to before India implemented a ban on the export of common white rice. This ban has benefited rice-exporting countries like Thailand, Vietnam, and others.
Customs data reveals that Vietnam exported over 7 million tons of rice worth nearly $4 billion in the first 10 months of 2023. This marks a 17% increase in volume and a 35% increase in value compared to the same period the previous year. The average export price of rice is estimated to be $558 per ton, a 15.3% increase from 2022. Vietnam’s main rice export markets include the Philippines, Indonesia, China, Ghana, and the Ivory Coast. It is projected that Vietnam will export around 8 million tons of rice in 2023, with a value of $4.6 billion.
Meanwhile, Thailand’s rice exports reached 6.9 million tons worth $3.9 billion, representing an 11.4% volume increase and nearly 25% value increase compared to the same period last year. The top five importers for Thailand are Indonesia, the US, South Africa, Iraq, and China. Thailand is expected to export between 8.6 to 8.7 million tons of rice this year.
Pakistan, being the world’s third-largest rice exporter, does not have detailed data. However, the Rice Exporters Association of Pakistan predicts that rice exports may exceed $2.5 billion in 2023. Additionally, Myanmar and Cambodia have also benefited from the halt in rice exports from India.
Increasing Demand for Rice
While the global rice market remains somewhat quiet, there is a notable increase in demand.
Indonesia’s National Logistics Agency (Bulog) has recently invited bids to supply rice totaling up to 543,000 tons. The desired product is 5% broken long-grain white rice. Potential suppliers include Thailand, Vietnam, Myanmar, Pakistan, and Cambodia. The deadline for receipt of goods is January 31.
As of November 26, Indonesia has already imported a total of 11 million tons of rice within the import quota of 3.3 million tons for the year. The import volume in 2024 is expected to reach at least 3.8 million tons.
Experts believe that Indonesia’s bid announcement could cause fluctuations in rice prices due to supply shortages. Due to India’s continued restriction on the export of common white rice until the end of 2024 and Vietnam yet to enter the new harvest season, global rice prices may increase again in the coming weeks.
Source: Vietnam.vn
