Rice Imports Are Normal | Insights for Vietnam’s Rice Market – Cam Rice

The news that Vietnam has just imported a batch of rice from India recently reported by Reuters news agency has received great attention from public opinion. However, according to experts, enterprises and regulators, this is normal in international trade and not at all a concern.

Import low-grade rice for processing

On January 4, in an article that Vietnam bought Indian rice for the first time in decades, Reuters quoted BVKrishna Rao, Chairman of the Association of Indian Rice Exporters, said that this is the first time that India rice exports to Vietnam. As one of the world's rice exporting powers, the fact that Vietnam imports rice from a big rival like India is surprising. Even many people worry whether this import is due to lack of rice or not?

Talking to reporters, agricultural expert Hoang Trong Thuy emphasized: "The import and export of rice in international trade is very normal!".

Mr. Hoang Trong Thuy analyzed that by 2020, Vietnamese rice has achieved good achievements in export. Notably, thanks to the efficient shift of rice structure to high quality products, the price of rice has improved and increased quite high, sometimes up to 505 USD / ton, exceeding Thai rice, bringing the price of Vietnamese rice. Male crowned in the world. Meanwhile, the domestic demand for lower grade rice products to use as raw materials for the production of processed products such as vermicelli, pho, animal feed... is still relatively high.

“We use high-quality, high-value rice for export and partly for domestic consumption; Importing low-quality rice to use as raw materials for processing is very normal, nothing to worry about. Not to mention, with the forecasts of the agricultural sector, this year or next year we will not have a shortage of rice for use and export, so this import is not related to the shortage of rice, so we have to import it. We simply need that product, then import it", Mr. Hoang Trong Thuy analyzed.

In fact, according to estimates of the Ministry of Industry and Trade, Vietnam's rice export structure continues to shift to fragrant rice, high quality rice with higher selling prices and added value. Along with that, rice farmers and traders are also more and more interested in improving quality, traceability and towards meeting the strict standards of demanding markets like the EU, Korea, United States.

Thanks to that, rice export in 2020 can reach 6.15 million tons, worth about 3.07 billion USD. Although the amount of rice exported decreased by about 3.5% compared to 2019, mainly for the purpose of ensuring national food security, the export value increased by 9.3%. The average export price for the whole year is estimated at 499 USD / ton, an increase of 13.3% compared to 2019. This is the highest average annual price in recent years, bringing great benefits to rice farmers.

Agreeing, Mr. Pham Thai Binh, Director of Trung An Agricultural High-Tech Joint Stock Company, said that Vietnam importing cheap rice from India is normal in commercial relations. Because, the supply from India is cheap, while the domestic demand for products as raw materials is still very high. Currently, low-grade broken rice in India is cheaper than Vietnamese rice of the same type that can be used to cook broken rice, make rice flour, cakes, vermicelli, pho... are domestic products in great demand.

The domestic rice source is enough for consumption and export

According to the Ministry of Agriculture and Rural Development, in 2020, the rice granaries in our country simultaneously announce a big season, rice output reaches nearly 43 million tons. In the difficult context due to natural disasters, thanks to the initiative and flexibility in applying and adjusting the seasonal calendar, the rice yield increased significantly, so even though the rice area decreased by about 190 thousand hectares, food production still increased significantly. tell. In 2020, the whole country will only export 6.1 million tons of paddy, worth over 3 billion USD, the remaining amount can ensure good service for domestic food and processing needs.

Mr. Nguyen Nhu Cuong, Director of Department of Crop Production (Ministry of Agriculture and Rural Development) added that even in 2021, we will not worry about rice shortage. Because the rice production season is still going on as planned. It is expected that, right in January 2021, 1.2 million tons of paddy will be harvested from the early winter-spring crop, well serving domestic consumption and export demand in the coming time.

Regarding the situation of rice exports in 2021, expert Hoang Trong Thuy said, maybe this year, when there is a vaccine against Covid-19, plus the supply of countries increases, the quantity and price of Vietnam's export South will not be as high as last year, but this is still the main export product of the agricultural, forestry and fishery group.

Mr. Hoang Trong Thuy further shared, currently, Thailand is launching a new rice variety that has more flexibility than Vietnamese fragrant rice and better water absorption than ST25. Their only loss is not as fragrant as the ST25. This rice variety is very popular with customers and if they overcome the low aroma situation, this will be a very strong competitive product with Vietnamese rice. Therefore, in order to compete better in the market, Vietnamese enterprises should focus on high-quality, high-quality rice as the orientation is being implemented recently, rather than worrying too much about Imports a lower quantity of rice from another country.

Source: http://baoapbac.vn/kinh-te/202101/nhap-gao-la-binh-thuong-917729/