16-8-2023 (HANOI) Vietnamese rice exporters have successfully renegotiated higher prices for approximately 500,000 metric tons of rice, marking the ripple effect of India’s unexpected ban on overseas rice sales. This development comes as global rice prices soar to a 15-year high, triggered by India’s decision to halt white rice exports last month.
This is the first concrete evidence of a price surge in the aftermath of India’s surprising ban, causing importers to pay elevated prices for one of the world’s most widely consumed staples, given the tightening global supplies.
Key importers such as Indonesia and the Philippines have reportedly paid premiums ranging from US$30 to US$80 per ton above the initial deals that were negotiated at approximately US$550 per ton for fragrant Vietnamese rice. These updated prices reflect the challenging market dynamics following India’s embargo on white rice exports in July, as confirmed by traders based in Singapore.
This price adjustment has translated into a windfall for sellers, amounting to an additional revenue of approximately US$15 million to US$40 million, in comparison to the prices agreed upon prior to India’s imposition of export restrictions.
According to an insider at an international trading company, “Buyers have agreed to pay higher prices for some of the cargoes which they bought for August shipment.” This observation coincides with the shipment of around 200,000 tons of rice this month, while an additional 300,000 tons await loading at various Vietnamese ports.
Global rice prices have witnessed a staggering surge of around 20%, pushing them to a 15-year pinnacle, triggered by India’s embargo. The decision, which has effectively removed 10 million tons, equivalent to 20% of the international market’s supply, has underscored India’s significant role as it normally contributes 40% of global rice supplies.
