Vietnamese rice prices affected as India lifts rice export ban

In July 2023, India issued a law banning rice exports, but on September 28, the country proposed to lift the ban. This information has many people worried that Vietnam's rice export prices will be affected.

Regarding this issue, on October 23, Mr. Tran Thanh Hai - Deputy Director of the Import-Export Department (Ministry of Industry and Trade) said that India is a country with a major role in the world rice market, and its moves have been closely monitored by the Ministry of Industry and Trade, the Vietnam Food Association and rice exporting enterprises.

Up to now, rice export activities have maintained growth momentum compared to the same period last year. In the first 9 months of 2024, Vietnam exported 6.9 million tons, earning 4.3 billion USD, up 8.4% in volume and 23% in turnover compared to the same period last year.

"It can be said that up to this point, rice exports have been quite positive. However, with India's move to lift the rice export ban, the export price of Vietnamese rice will certainly be affected and businesses and associations have been closely monitoring this move to avoid being passive" - ​​Mr. Hai affirmed that he will continue to monitor the situation with associations and localities.

Mr. Hai also emphasized that Vietnam is shifting to producing high-quality rice varieties, rice with special characteristics such as fragrant rice. This has helped diversify products, avoid collisions with exported Indian rice varieties and limit the possibility of being affected.

According to Deputy Minister of Industry and Trade Nguyen Sinh Nhat Tan, last week the Prime Minister chaired a conference on implementing the project of 1 million hectares of high-quality rice. Following the Prime Minister's direction, we must diversify products, improve the quality of rice, especially building brands.

Therefore, the solutions proposed to build a unique brand, typical of Vietnamese rice, are for Vietnamese enterprises to promote the application of high technology... According to Mr. Tan, these are solutions that we can rest assured to compete fairly with other countries.

Regarding India's policies, Mr. Tan assessed that "there will be an impact, but there is no need to be too concerned". He recalled that when India previously banned rice exports, many opinions said that it was necessary to consider stopping exports to ensure domestic food security.

Therefore, the Deputy Minister of Industry and Trade affirmed that he will strictly follow the principle of ensuring domestic food security. Once this is ensured, he will boost exports.