Vietnam to benefit as Indonesia increases rice import volumes

According to the latest announcement from Indonesia's state purchasing agency, the country is ramping up rice imports in August, with volumes reaching up to 350,000 tonnes, the highest ever recorded.

Indonesia is seeking 5 per cent broken white rice produced in 2024, with preferred supply sources from Vietnam, Thailand, Cambodia, Myanmar, and Pakistan.

Nguyen Van Nhat, CEO of Can Tho Rice Export JSC, said, "Indonesia's increased rice tenders are a positive signal for Vietnam's rice export industry. Although Vietnam's export rice price is currently the highest in the world at $578 per tonne, we believe that increased demand from Indonesia will create opportunities for us to continue exploiting this market."

The sudden increase in tendered rice volume from 320,000 tonnes to 350,000 tonnes is Indonesia's response to falling short of its procurement target in July, when only slightly over 200,000 tonnes were purchased despite opening tenders for large quantities.

Indonesia has already opened tenders to purchase over 2.5 million tonnes of rice this year, with Vietnam, Thailand, Myanmar, and Pakistan as the main suppliers. In the most recent tender last July to purchase 320,000 tonnes of rice, seven out of 12 bids from Vietnamese enterprises were successful, securing 185,000 tonnes. Among these, VinaFood 1 won the largest tender, amounting to 104,000 tonnes.

According to vtv.vn, a representative of a rice export company in Dong Thap province stated that Vietnam's rice supply is currently limited as the summer-autumn crop is ending and the autumn-winter crop yield is not substantial. From now until the end of the year, rice stocks will not be abundant, likely maintaining high prices.

"Currently, Vietnam's export rice prices are higher than those of other countries, so businesses are cautious about participating in tenders to avoid the situation of selling at a loss that has occurred in the past," he said.

In the first seven months of 2024, Vietnam exported nearly 5.3 million tonnes of rice, earning $3.34 billion. These figures represent records for Vietnam's rice industry compared to the same period in previous years, including 2023.

The Ministry of Agriculture and Rural Development forecasts that the global rice market will continue to be dynamic in the final months of the year, with Vietnam expected to export approximately 7.5-8 million tonnes of rice, with export value exceeding $5 billion.

Rice gaining traction within major markets Rice exports in 2024 are shaping up to perform strongly overall, with promising results already achieved over the past several months.

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