India restricts exports

On September 8, the Government of India announced a ban on exporting broken rice and imposed a 20% tax on the export of certain types of rice from September 9, in an effort to increase the supply and lower the price of rice in the country. below-average rainfall affects crops. These new bans and tariffs will affect about 60% of exports.

Amid growing world demand, the erratic weather in India has made crops precarious. Due to the extremely low rainfall recorded in June 2022 and erratic in July-August 2022, the main producing regions (Uttar Pradesh, West Bengal and Bihar) of India have reduced by 13% of the cultivated area. .

India accounts for more than 40% of global rice exports and competes with Thailand, Vietnam, Pakistan and Myanmar. India's rice exports hit a record 21.5 million tonnes in 2021, more than the combined exports of the four major rice exporters behind it, Thailand, Vietnam, Pakistan and the US.

India exports rice to more than 150 countries and regions. So any cuts from the country would increase pressure on global food prices, which have already risen because of the drought and the Russian-Ukrainian conflict.

Thailand declines, Vietnam is quiet

After the ban took effect, the world rice market had a "fever" in all rice exporting countries from India to Pakistan, Thailand and Vietnam. However, up to now, with the easing of export regulations from the Indian government, the market has calmed down. One of the most notable rice suppliers in the world market today is Thailand, which recorded a massive reduction in prices in all commodities. Specifically, this country's 5% broken rice is trading at 435 USD/ton, about 11 USD/ton lower than last week and only 2 USD higher than the beginning of September. High-grade fragrant rice such as Hom Mali decreased by 22 USD/ton compared to last week, to just over 900 USD/ton; Jasmine rice dropped to 16 USD compared to last week, trading at 632 USD/ton.

Similarly, Pakistan's 5% broken rice, after suddenly skyrocketing to $427/ton last week, now fell to $380-393/ton. Only Indian and Vietnamese rice continued to be stable at $383/ton and $423/ton, respectively. Mr. Nguyen Van Don, Director of Viet Hung Co., Ltd (Tien Giang), said: After India's order to restrict rice exports, up to this point, Vietnam's rice price has increased by about 40-50 USD/ton. . However, in recent days, the market has gradually stabilized again when India has loosened many policies on rice export. Le Anh agricultural products always monitor the world rice market to come up with business strategies suitable to the current situation. In the first week of November, Le Anh's agricultural products docked 43 containers of Indian rice to ensure production and business at home and abroad.

(Artwork: The first week of November Le Anh's agricultural products have docked 43 containers of Indian rice)