The Vietnam Food Association and domestic enterprises strictly comply with the provisions of Decree No. 107/2018/ND-CP dated August 15, 2018 of the Government on rice exports and regularly maintain the minimum circulation reserve as prescribed in Decree No. 107 to ensure the balance of export and domestic consumption, contributing to stabilizing rice prices in the domestic market…
India is the world’s largest rice exporter.
The Import-Export Department (Ministry of Industry and Trade) said that on July 20, 2023, the General Department of External Trade of India issued announcement No. 20/2023 on banning the export of all ordinary white rice (non-Basmati). This decision took effect immediately.
The ban was issued by India when rice prices in this country have risen more than 11.5% in one year and 3% in the past month alone. Along with that, unfavorable weather in the spring-summer rice crop further pushed the Indian Government to make this decision. This movement is believed to boost domestic food supplies and control inflation.
Some cases allowed to be continued for export include shipments on board before the time of the announcement; shipments with filled freight invoices; ships arrived in India and the order of loading on board was issued; shipments transferred to Customs before the announcement and registered on the electronic customs system or the shipment put into the customs warehouse for export before the time of the announcement; shipments exported under the license of the Government of India to countries to meet food security needs and based on the request of the Government of that country.
India is the world’s largest rice exporter, accounting for 40% of the global market. India’s decision to ban rice exports may cause major price disruptions in international markets, especially as the food supply chain is being affected by the conflict in Ukraine.
Therefore, to contribute to rice consumption and food security, the Import-Export Department (Ministry of Industry and Trade) has sent Document No. 584/XNK-NS to rice exporters and Document No. 585/XNK-NS to the Vietnam Food Association to request coordination in implementing some related contents.
Ministry of Industry and Trade urges businesses to stabilize the market.
Accordingly, the Import-Export Department proposed the Vietnam Food Association coordinate the implementation of some contents as follows: Urge members, especially large enterprises, which play a leading role such as the Northern Food Corporation, the Southern Food Corporation, etc to purchase and consume rice to ensure benefits for rice growers under the current policy.
Members are required to strictly comply with the provisions of Decree No. 107/2018/ND-CP dated August 15, 2018, of the Government on rice export and regularly maintain the minimum circulation reserve as prescribed in Decree No. 107/2018/ND-CP to ensure the balance of export and domestic consumption, contributing to stabilizing rice prices in the domestic market.
In addition, it is necessary to closely monitor the rice market, and actively discuss with members on difficulties and problems arising in the supply and circulation of rice in the domestic and international markets to report and propose solutions to relevant ministries and sectors.
The Import-Export Department asked traders to strictly comply with the provisions of Decree No. 107/2018/ND-CP dated August 15, 2018 of the Government on the purchase of rice to ensure export balance and domestic consumption; maintain circulation reserve as prescribed, contributing to stabilizing rice prices in the domestic market and ensuring food security.
We need to actively monitor the market situation, organize appropriate production and export solutions to ensure effective export; strictly implement the periodic reporting regime on the amount of rice, inventory, the situation of signing and implementing rice export contracts under the provisions of Decree No. 107/2018/ND-CP, and report to the Import-Export Department – Ministry of Industry and Trade and the Vietnam Food Association.
At the same time, actively discuss with the Vietnam Food Association, report to the Ministry of Industry and Trade, and the MARD difficulties and problems arising in the process of rice supply and circulation in the domestic and international markets to have timely solutions.
According to data from the Ministry of Industry and Trade of India, in May 2023, Vietnam imported a record volume of rice from India, reaching about 101,000 tons, up 56.64% compared to May 2022, ranking 4th among India’s rice importers in terms of volume.
In the first 05 months of 2023, Vietnam imported 367.5 thousand tons of rice from India, up 31.76% over the same period last year, ranking eighth among India’s rice importers./.