Hanoi (VNA) – Vietnamese Trade Counselor in India Bui Trung Thuong has urged Vietnamese rice exporters to strengthen their global competitiveness and diversify markets and sales channels following New Delhi’s recent decision to lift its ban on 100% broken rice export.
The Indian government on March 7 removed the ban, creating challenges for global rice-exporting nations amid falling prices, Thuong said in an interview with Vietnam News Agency (VNA) correspondent in New Delhi on the potential impact on Vietnam’s rice market.
According to him, there are two reasons for India’s Ministry of Commerce to lift the ban, namely rising rice cultivation and production forecast to surpass last year’s levels, along with the need to clear the country's high rice reserves ahead of the new harvest, and India's earlier concerns over food security eased.
India had imposed the ban on 100% broken rice export in September 2022 and extended it to regular white rice in 2023, pushing global rice prices from around 450 USD per tonne to a peak of 700 USD per tonne.
Recently, prices have dropped sharply. Vietnamese and Thai 5% broken rice have seen declines of 38-45%, with Vietnam’s prices falling from 680-700 USD per tonne to 390-400 USD per tonne, an unprecedented decrease.
Thuong noted that while the current price drop from the 700 USD-per-tonne peak was anticipated, the present rate of 390-420 USD per tonne is reasonable and beneficial for both exporters and importers.
Global rice prices are expected to stabilise due to several factors, such as projected global production increases of up to 10 million tonnes this year, expanded use of rice in ethanol production and industrial applications, and stable demand, with around 50% of the world’s population relying on rice as a staple.
Given the context, Thuong advised Vietnamese rice exporters to focus on developing high-quality rice varieties and building geographical indication-based branding to enhance their global reputation. Besides, they should diversify markets and sales channels, reducing reliance on government-to-government deals, and expanding into the private sector, and strive to maintain their market share, even in regions with lower export volumes or turnover./.
