India’s Rice Exports to Vietnam
Vietnam recently started to buy food grains, especially rice, from India due to its attractive prices. Vietnam has started to import rice from India in spite of the fact that the country (Vietnam) is the third biggest exporter of rice in the world.
- Why did Vietnam begin to import rice from India?
- At what price will India export rice to Vietnam?
- How is stockpiling of rice in Vietnam inducing rice imports from India?
- Why did the international market value of Indian Rice increase?
- What is the current scenario of paddy cultivation and exports in Vietnam?
Why did Vietnam begin to import rice from India?
- Vietnam has begun to import rice from India because the local prices in the country jumped to the highest in nine years due to Limited domestic supplies. This is mainly because Vietnam has begun to stockpile huge quantity of rice for future.
- Also, the Indian prices of rice are highly attractive. The huge price differences is forcing Vietnam Government to import rice from India.
At what price will India export rice to Vietnam?
The Indian traders are to export 70,000 tonnes of rice at around 310 USD per ton to Vietnam. India is to export broken rice to Vietnam during January and February, 2021.
How is stockpiling of rice in Vietnam inducing rice imports from India?
- The Global pandemic has prompted Vietnam and other countries to stockpile rice. This is because the shrinking supplies of food grains are increasing concerns about food insecurity.
- Vietnam is planning to stockpile 270,000 USD of rice to ensure food availability amidst covid-19 supply chain disruptions worldwide. Thus, it is facing shortage and is relying on imports.
Why did the international market value of Indian Rice increase?
India is offering broken rice at 381 USD to 387 USD per ton. On the other hand, Vietnam is offering broken rice at 500 USD to 505 USD per ton. This attractive price of Indian rice has increased its demand from Asian and African countries. It is expected that the other Asian countries like Thailand are to shift towards India for rice imports.
What is the current scenario of paddy cultivation and exports in Vietnam?
The total output of Vietnam in 2020 fell by 1.85 % compared to 2019. Also, the rice exports of Vietnam in 2020 have fallen by 3.5% as compared to 2019.
Category: Economy & Banking Current Affairs