31-7-2023 (HANOI) Vietnam currently has no immediate intentions to impose restrictions on its rice exports, a senior official from the Vietnam Food Association stated on Monday (Jul 31). This assurance comes after India’s decision to curb its rice exports, raising concerns about the global supply of this essential commodity.
The anonymous official, representing Vietnam’s rice processors and exporters, clarified that Vietnamese companies are presently carrying out rice exports without any disruptions. India, accounting for 40% of the world’s rice exports, had imposed a halt on its largest export category over a week ago to stabilize domestic prices. Erratic weather conditions had posed a threat to rice production, causing prices to surge to multi-year highs.
Following India’s move on July 20, Vietnamese rice prices also experienced a significant surge. Vietnam’s summer-autumn crop is currently underway, and it is the world’s third-largest rice exporter, trailing behind India and Thailand.
Traders reported that Vietnam’s 5% broken rice prices climbed to US$550 to US$575 per metric tonne on Monday, reaching the highest level since 2011, compared to the range of US$515 to US$525 before India’s export restrictions.
Shortly after India’s announcement of export curbs, Vietnam’s Ministry of Industry and Trade called upon the Vietnam Food Association to ensure ample domestic rice supplies and food security. The ministry also urged traders to strike a balance between exports and domestic sales to stabilize domestic prices.
According to preliminary data from the Vietnamese government, rice shipments from Vietnam in the first seven months of this year have increased by approximately 18.7% compared to the previous year, amounting to 4.84 million tonnes. The revenue generated from rice exports during this period was estimated to have risen by 29.6% to US$2.58 billion.
Adding to the complexities, the United Arab Emirates recently announced a four-month ban on rice exports and re-exports, including rice of Indian origin.
