Vietnam begins to purchase Non-Basmati rice from India
IGC has estimated Indian rice production to be around 120 Mn MTS.
Industry sources have communicated to news agency Reuters that the 3rd top rice exporting country, Vietnam has started purchasing the rice grain from India for the first time in decades. The local rice prices soared to their highest in 9 years due to limited domestic rice supplies. The rice buyers emphasize shrinking rice supplies in Asia, which might boost rice prices in 2021. This could even drive traditional rice buyers from Thailand and Vietnam to switch to India. Industry representatives say that Indian rice exporters have been contracted to trade 70,000 MTS of 100 percent broken white rice for January 2021 and February 2021. Deliveries were seen roughly at $310 per MTS on a free-on-board (FOB) basis. B.V. Krishna Rao, president of the Rice Exporters Association said that for the first time India is exporting rice to Vietnam. Indian rice prices are competitive while the vast rice price difference is making rice exports possible.
Indian parboiled rice markets maintained a soft tone over the last week. Most of the rice exporters are bullish for IR 64 Parboiled rice variety. The crisis in the container segment has not eased out fully whereas ocean freights to major rice importing countries in West Africa are not viable. The International Grains Council (IGC) has projected Indian Rice Production to be 120 Mn MTS with previous rice supply at 30 Mn MTS. On the other hand, Indian rice exports are estimated at 12 Mn MTS and local consumption at 105 Mn MTS. One of the rice importing countries, Bangladesh continued to announce international rice tenders and projected a rice purchasing position for both G2G and the open market for the year 2021.
Vietnam's rice export prices for 5 percent broken white rice increased up to $500 - $505 per MTS from $500 per MTS due to low local rice supplies. One rice exporter said that rice buyers from the Philippines are still buying, but with lesser quantities. Rice trading activity has slowed down this week because of the holidays. According to initial data from the government, Vietnam’s rice exports in 2020 were projected to have decreased by 3.5% equivalent to 6.15 Mn MTS. Rice export income in Vietnam increased by 9.3% equivalent to $3.07 Bn in 2020.
Thailand's rice export prices for 5 percent broken rice slightly decreased to $510 - $516 per MTS from $516 - $520 per MTS. Rice demand for Thailand rice has been quite flat due to high rice prices as per one rice exporter. One rice trader said that the rice supply amount has been extremely low resulting in the increasing rice price where the strong Thailand baht does not support the condition as rice demand is seen as weak.
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