Exclusive: Vietnam Sourcing Husked Brown Rice from India for Re-exports, According to Sources
Published on: February 27, 2024.
Filed under:
Vietnam Imports Husked Brown Rice from India to Meet Global Demand
Mumbai, Feb 27 (Reuters) – In a move to capitalize on the strong global demand for rice, Vietnam has imported husked brown rice from India for the first time in decades. The rice will be processed in Vietnam and the refined, white variety will be exported, according to trade and government sources.
Vietnam, the world’s third-largest rice exporter, has imported over 200,000 metric tons of husked brown rice from India between December and February. This import comes at a time when India, the largest exporter of rice, has banned white rice exports in 2023.
The ban imposed by India has led to a surge in export orders for rice from Vietnam, resulting in a record 8.3 million metric tons of rice shipments in 2023. However, this surge in exports has led to a depletion of stockpiles in Vietnam, prompting the country to turn to Indian imports to meet the rising global demand.
Since rice paddy was not readily available in Vietnam for milling, some traders resorted to importing husked rice from India, processing it, and then exporting the grain. This strategy proved to be profitable for the traders, leading others to follow suit.
While India’s husked brown rice was priced at approximately $500 per metric ton on a free-on-board basis on the east coast, Vietnamese dealers were able to sell the polished grain for over $600. As a result, Vietnam now accounts for about 95% of India’s total husked brown rice export.
Currently, Vietnam imports around 70,000 metric tons of husked brown rice from India each month to meet the demands of the market. This move is particularly beneficial as the cost of Indian rice remains lower than the new season’s supplies in Vietnam.
Previously, Vietnam imported 100% broken white rice from India to use for animal feed and beer production. The Philippines, Indonesia, Nigeria, Senegal, Ivory Coast, and Malaysia are the leading importers of rice, depending on exports from India, Thailand, Vietnam, Pakistan, and Myanmar.
India currently permits the export of only parboiled and premium basmati rice varieties.
Source: https://www.nasdaq.com
