Vietnam has recently begun to purchase grain, especially rice, from India due to attractive prices. Though Vietnam is the third-largest exporter of rice in the world, Vietnam has begun importing rice from India.

 

♦ Vietnam has begun importing rice from India since, due to insufficient domestic availability, the country`s local price has risen to the highest level in 9 years. This is largely because, for the future, Vietnam has begun to store a significant amount of rice.

♦ The price of Indian rice, however, is very attractive. The enormous price gap forced the government of Vietnam to import rice from India.

♦ 70,000 tonnes of rice will be shipped to Vietnam by Indian traders at a price of approximately US$310 per tonne. In January and February 2021, India will be exporting broken rice to Vietnam.

♦ The global pandemic has contributed to the stockpiling of rice in Vietnam and other countries. This is because the decline in the availability of food makes people more and more anxious about food insecurity.

♦ In the event of a disturbance in the global supply chain of Covid-19, Vietnam plans to reserve US$270,000 of rice to ensure access to food. It faces shortages, therefore, and is dependent on imports.

♦ The price of broken rice in India ranges from US$381 to US$387 per ton.

♦ Demand in Asian and African countries has been increased by the attractive price of Indian rice. Thailand and other Asian countries are expected to move imports of rice to India as well.

♦ Total production in Vietnam in 2020 drops by 1.85% compared to 2019. Furthermore, Vietnam`s rice exports dropped by 3.5 percent in 2020 compared to 2019.