The world’s third-biggest exporter of rice Vietnam has started buying rice from India for the first time in decades after local prices jumped to their highest in nine years amid limited domestic supplies.
As per reports, the purchases underscore tightening supplies in Asia, which could lift rice prices in 2021 and even force traditional buyers of rice from Thailand and Vietnam to switch to India the world’s biggest exporter of the grain.
Indian traders have contracted to export 70,000 tonnes of 100% broken rice for January and February shipments at about $310 per tonne on a free-on-board basis, the industry officials said.
“For the first time, we are exporting to Vietnam,” B.V. Krishna Rao, president, Rice Exporters Association.
“Indian prices are very attractive. The huge price difference is making exports possible,” it also added.
Vietnam’s 5% broken rice is offered at about $500-$505 per tonne, compared to Indian prices of $381-$387.