What did Vietnam buy Indian rice for the first time?

Vietnam bought Indian rice for the first time, this may seem unusual, but in fact, according to businesses, this is completely normal, because Indian rice imported mainly is broken and used for processing. Out.a

Mr. Nguyen Quang Hoa, Director of Duong Vu Co., Ltd., an exporter of 200,000 tons of rice per year, said that it is completely real for Vietnam to buy Indian rice for the first time. However, according to Mr. Hoa, this is completely normal in commercial transactions.

"It is true that for the first time this year, Vietnamese enterprises import rice from India, but mainly import plates to process vermicelli, cakes, animal feed or beer" - Mr. Hoa said.

According to Mr. Hoa, because the import tax of broken rice is very low (while the import tax of rice is 40%), enterprises importing broken rice from India for processing have many advantages due to the lower price of Indian rice. with Vietnamese rice.

Vietnam imported rice from India for the first time. Photo: I.T

In addition, according to Mr. Hoa, the reason that this year Vietnamese businesses have to import plates from India is because in the past few years, Vietnam has a policy of reducing the area of ​​medium-quality rice such as IR40404, increasing the rice area. fragrant, high quality rice, so the segment of rice and broken rice for processing is lacking.

"This year, Vietnamese rice prices have approached Thailand's rice prices thanks to localities to increase the area of ​​fragrant rice, high quality rice, very suitable for the Thai market, while the source of rice is similar. IR50404 for processing is not enough, so it is completely understandable to find the equivalent source of rice from India "- Mr. Hoa said.

Previously, Reuters reported that Vietnam - the world's leading rice exporter, bought rice from its Indian rival for the first time after the highest increase in rice prices in 9 years.

According to Reuters, Indian traders have signed contracts to export 70,000 tons of 100% broken rice with Vietnamese enterprises for shipments in January and February for about 310 USD / ton by free delivery method ( FOB).

"The first time we exported to Vietnam", B.V. Krishna Rao, president of the Rice Exporters Association, told Reuters - "Indian rice prices are very attractive. The price difference is too large making it possible to export." Currently, 5% broken rice of Vietnam is offered for sale about 500 - 505 USD / ton, significantly higher than the price of Indian rice of 381-387 USD / ton.

Source: https://danviet.vn/viet-nam-lan-dau-tien-mua-gao-cua-an-do-de-lam-gi-20210105202544432.htm