Newsletter rice market week 25/2020: Philippines abandoned plans to import 300,000 tons of rice, fierce competition from Indian rice

This week, the Philippine press reported that the Philippines International Trade Corporation (PITC) canceled plans to import 300,000 tons of rice through G2G (intergovernmental), after discussions with the Ministry of Agriculture. this (DA).

In a statement released on June 26, 2020, Philippine Minister of Industry and Trade DTI, Mr. Ramon M. Lopez, said that the above-mentioned rice import plan was initially based on the pepper evaluation. In the aftermath of the COVID-19 outbreak (March 3-5, 2020), some major rice exporting countries refrained from exporting rice to ensure food security. country.

However, up to the present time, the world rice flow has returned to normal. The domestic supply of rice in the Philippines at this time has also been guaranteed.

Earlier, the Philippine press reported that on June 8, 2020, PITC opened a tender to import 300,000 tons of rice to import in July and August 2020, attracting the participation of representatives from the following countries: Vietnam South, Thailand, Myanmar and India.

Bidding results were representatives of Vietnam, Myanmar and India, and Thailand did not win because the price was too high.

However, after that auction, PITC announced: Only the bidder ranked in this auction, and announced the bid results to wait for budget disbursement; The import contract will depend on the budget from the Philippine Government; and this bid does not constitute the import commitment of PITC nor the contract confirmation for the bidders.

Indian rice competes fiercely with Vietnam

Talking to Reuters news agency on June 19, BV Krishna Rao, President of the Indian Rice Exporters Association (IREA), said: “Indian farmers are paying more attention to rice. They are able to expand their cultivated areas with the support of the government. In the new crop year 2020/2021, we can produce up to 120 million tons of rice ”.

This figure will break the record output of 117.97 million tons of rice in the 2019-2020 season.

In early June, the Indian government announced that it would buy farmers' ordinary rice in the new season at a 2.9% higher price.

India's Agriculture Minister, Narendra Singh Tomar, said that the Indian government would set the price of ordinary rice purchased additionally for state reserves at 1,868 rupees (VND 570,000) / 100kg.

India is entering the summer rice crop amid a favorable rainy season throughout the rice growing regions in the south and north of the country.

Rainfall is more abundant than usual and rice export output is rising thanks to rising global rice prices in recent times encouraging Indian farmers to expand their cultivation areas, Nitin Gupta, Vice President in charge Rice business of Olam India Agricultural Commodities Export Company said.

Rice export prices of Thailand and Vietnam increased to new highs this year thanks to limited supply.

But India's higher rice production in the new crop could keep domestic rice prices at the same time and make India's export rice more competitive and offset the lower supply from two rivals in Southeast Asia.

Higher Indian rice production in the new crop could force state-owned companies to increase purchases of farm rice despite their large rice stockpiles

Source: https://bom.to/wB5Xgg