India’s rice export restrictions are pushing many foreign enterprises to Vietnam, Thailand, and Myanmar for alternative sources. The export price of Vietnamese rice has risen steadily over the past few days, according to Reuters.
Last week, India – the world’s largest grain exporter, banned rice exports and imposed a 20% tax on exports of many other grains to stabilize prices, meeting the needs of more than 1.3 billion people.
Rice prices have therefore risen by 5% in Asia since India’s announcement and are expected to rise further this week.
The export price of Vietnamese rice has increased steadily due to India’s rice export restriction. (Photo: Internet)
“India accounts for more than 40% of global shipments. So, no one is sure how much the price will rise in the coming months, ” Mr. Himanshu Agarwal, CEO of a leading Indian rice export business, told the Reuters News Agency.
Rice transportation has been suspended in Indian ports and nearly 1 million tons of grains have been stuck due to buyers’ refusal to pay the Indian Government’s new 20% export tax.
Their reason is that there is no such provision in the contract and it makes no sense to pay extra money for an agreed contract.
When Indian exporters stop signing new contracts, buyers are trying to ensure the supplies from Vietnam, Thailand, and Myanmar. The price of 5% broken white rice has increased by about 20 USD/tonne in the past four days.
“We think prices will rise further in the coming weeks,” a rice exporter based in Ho Chi Minh City told the Reuters News Agency.
According to Reuters, the price of Vietnamese 5% broken rice RI-VNBKN5-P1 was offered at 410 USD/tonne on September 12, an increase of about 20 USD compared to 390 – 393 USD/tonne last week.
China, the Philippines, Bangladesh, and African countries such as Senegal, Benin, Nigeria, and Ghana are among the most frequent rice importers. Iran, Iraq, and Saudi Arabia import high-end basmati rice.
Rice is the major food for more than 3 billion people around the world. When India banned rice exports in 2007, global rice prices increased to a record high of around 1,000 USD per tonne.