Vietnamese rice prices rise sharply after India’s rice export ban

This marks the latest development after India, the world's largest rice exporter, issued a ban on the export of non-basmati white rice from July 20.

Specifically, Vietnamese 5% and 25% broken rice was offered at between US$548 and US$552, respectively, on July 26, up US$5 per tonne compared to the previous day, according to the Vietnam Food Association (VFA).

This is widely considered to be the highest export price offered by Vietnamese rice enterprises since July 2021.

However, in comparison with rice from regional competitor Thailand, the Vietnamese export price on July 26 was US$40 per tonne lower than the Thai for the 5% broken price, but US$6 per tonne higher than the Thai for the 25% segment.

Pham Thai Binh, general director of Trung An Hi-tech Agriculture Joint Stock Company, attributed the export price hike to India's recent rice export ban, which has prompted importers to eye other suppliers, including Vietnam. 

Nguyen Dinh Tung, general director of Vina T&T Import-Export Company, pointed out that the Indian ban coupled with the Russia-Ukraine conflict may lead to a shortage of supply sources occurring in the global market.

The move is therefore anticipated to create a wealth of opportunities for Vietnamese firms to sign new export deals and expand their export markets moving forward.

Meanwhile, amid global uncertainties, economic expert Dinh Trong Thinh warned that local firms must be cautious regarding food prices as they may go up or down, asking them not to hold the price or hoard rice to wait for the price to increase to avoid risks.

He emphasised that although Vietnam is a large food producer and has relatively high reserves, it is important to ensure national food security to avoid a facing shortage of food in the future.

The Ministry of Agriculture and Rural Development forecasts that Vietnam will export about 7.2 million tonnes of rice worth more than US$4 billion this year – a historic record value.