Vietnamese firms secure Indonesian rice contracts
Published on: February 7, 2024.
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In line with the 2024 plan, Indonesia is set to become one of the world’s largest rice importers, importing approximately 3 million tonnes of rice. This will make Indonesia a key customer for the Vietnamese rice industry. The Indonesian National Logistics Agency (Perusahaan Umum BULOG) recently initiated a tender to import 500,000 tonnes of rice to boost the country’s food reserves. Vietnam emerged as the winner of eight out of 17 packages in the bidding process, securing the majority of the imports.
Among the successful Vietnamese companies, Loc Troi Group Joint Stock Company (LTG), Northern Food Corporation (Vinafood 1), and Southern Food Corporation (Vinafood 2) each won two lots. Kien Giang Import-Export Joint Stock Company and Phat Tai Food Limited Company also secured lots, while the sole Singaporean trading company R&S Trader PTE won three lots.
According to Vietnam Customs General Department data, Indonesia surpassed China to become Vietnam’s second-largest rice export market in 2023, with 1.16 million tonnes totaling 640 million USD. This marks a significant increase of 877-992% compared to the previous year.
Experts believe that Vietnamese companies winning the majority of the 500,000-tonne rice tender indicates a positive outlook for a successful rice harvest after the Lunar New Year. The latest data from the Vietnam Food Association (VFA) shows that the country’s rice export prices have decreased by approximately 11 USD/tonne compared to the end of 2023. Currently, the export price of standard 5% broken rice is around 642 USD/tonne, which is lower than the price of equivalent grades from Thailand but higher than the price in Pakistan.
Industry insiders attribute the lower export prices to limited available stock, with transactions expected to resume at the end of February or early March. During this period, businesses focus on the domestic market and prepare for the Tet holiday, refraining from actively entering new contracts.
In terms of domestic rice prices, there has been a slight increase compared to the previous day. For example, IR 504 rice is priced at 9,000 – 9,200 VND/kg, Fragrant rice 8 at 9,600 – 9,700 VND/kg, and OM 5451 at 9,300 – 9,500 VND/kg.
To learn more about rice exporters and suppliers, please visit the following websites:
– [hasrice.com](https://www.hasrice.com)
– [pakistanrice.com](https://www.pakistanrice.com)
– [brokenrice.com](https://www.brokenrice.com)
(Source: [VietnamPlus](https://en.vietnamplus.vn))
