Global Rice News

Vietnam Imports Husked Brown Rice from India to Meet Global Demand

In an effort to capitalize on the strong global demand for rice, Vietnam has started importing husked brown rice from India for the first time in decades. The imported rice will be processed in Vietnam and then exported as the refined, white variety. This move comes as Vietnam, the world’s third largest rice exporter, is receiving substantial export orders after India, the largest exporter, implemented a ban on white rice exports in 2023.

According to trade and government sources, Vietnam has imported at least 200,000 metric tons of husked brown rice from India between December and February. The surge in rice shipments from Vietnam reached a record 8.3 million metric tons in 2023, leading to a depletion of stockpiles. To meet the rising global demand, Vietnamese traders have turned to importing husked rice from India for processing and export.

The decision to import from India proved profitable for traders, as India’s husked brown rice was being offered at a lower price compared to Vietnamese dealers selling the polished grain. Vietnam now accounts for about 95% of India’s total husked brown rice exports, and is currently importing around 70,000 metric tons of husked brown rice from India every month.

Despite the arrival of new season’s supplies in Vietnam, Indian rice remains a cheaper option. Prior to the export ban in India, Vietnam imported 100% broken white rice from India for purposes such as animal feed and beer production.

Rice is a staple food in many countries, and leading importers like the Philippines, Indonesia, Nigeria, Senegal, Ivory Coast, and Malaysia heavily rely on exports from countries like India, Thailand, Vietnam, Pakistan, and Myanmar.

While India currently only allows the export of parboiled and premium basmati rice varieties, the increased import of husked brown rice from India by Vietnam highlights the complex dynamics of the global rice market.

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