Vietnam, the world’s third largest rice exporter, bought rice from India for the first time in a decade. India’s largest exporter of rice has been hit by a sharp rise in domestic prices to a nine-year high. Indian traders have agreed to export 70,000 tonnes of rice in January and February. Industry officials say it will export on a free-on-board (FOB) basis at $ 310 per tonne.
‘We are exporting to Vietnam for the first time. Indian prices are very attractive. Exports enable a huge price difference, ”said BV Krishna Rao, President, Rice Exporters Association. In Vietnam, rice costs between $ 500 and $ 505 per tonne. This is much higher than the Indian price of $ 381–387. Rice imported from India is used for animal feed and distilleries. Vietnam’s rice production in 2020 fell 1.85 percent to 42.69 million tonnes. By 2020, the country’s rice exports will fall by 3.5 percent to 6.15 million tonnes.