Vietnam and Thailand Experience Surge in Rice Exports Following India's Ban
Vietnamese and Thai rice exports have increased significantly due to an export ban by India, typically the largest global supplier. This ban has prompted nations to seek alternative sources, leading to higher market prices.
Vietnam’s Prime Minister, Pham Minh Chinh, highlighted agriculture as a crucial economic sector. Despite a slump in major exports like smartphones, record rice export revenues, which rose 35% to $4.6 billion in 2023, were a positive development for Vietnam.
The country shipped considerably more rice to Indonesia, Singapore, and Ghana.
Vietnam ranks fifth in the world rice production and third in exports, managing to slightly boost production in 2023 to over 43 million tonnes despite an El Niño-induced dry spell. Its export volume surpassed the usual 6-7 million tonnes, reaching over 8 million tonnes.
Thailand, ranked second globally in rice exports, also saw an increase to more than 8 million tonnes—a peak since 2018—after recovering from drought and soaring costs.
The Indian export ban, particularly on non-basmati white rice since July, aimed at stabilizing domestic supply and prices ahead of the general election, sparked this surge in exports from Vietnam and Thailand.
With India making up around 40% of the global rice export market, the ban impacted countries like Iran, Saudi Arabia, China, and others in Africa.
Countries in need are securing new rice import deals; for instance, Indonesia confirmed agreements totaling 3 million tonnes with Thailand, India, and Cambodia.
The UN Food and Agriculture Organization noted a 15% spike in benchmark export prices following India's ban, rising to $645 per tonne. Overall, global rice prices increased by 15% to 25%, reported by the Vietnam Food Association.
Consumers are feeling the strain, as seen in Hanoi where people like one woman have to cut expenses on non-essentials to afford the staple, which now costs about $4 per 3kg, representing a 40% increase.
Prices are expected to stay elevated into 2024 due to the possibility of India extending its export restrictions post-election and ongoing El Niño conditions.
The country shipped considerably more rice to Indonesia, Singapore, and Ghana.
Vietnam ranks fifth in the world rice production and third in exports, managing to slightly boost production in 2023 to over 43 million tonnes despite an El Niño-induced dry spell. Its export volume surpassed the usual 6-7 million tonnes, reaching over 8 million tonnes.
Thailand, ranked second globally in rice exports, also saw an increase to more than 8 million tonnes—a peak since 2018—after recovering from drought and soaring costs.
The Indian export ban, particularly on non-basmati white rice since July, aimed at stabilizing domestic supply and prices ahead of the general election, sparked this surge in exports from Vietnam and Thailand.
With India making up around 40% of the global rice export market, the ban impacted countries like Iran, Saudi Arabia, China, and others in Africa.
Countries in need are securing new rice import deals; for instance, Indonesia confirmed agreements totaling 3 million tonnes with Thailand, India, and Cambodia.
The UN Food and Agriculture Organization noted a 15% spike in benchmark export prices following India's ban, rising to $645 per tonne. Overall, global rice prices increased by 15% to 25%, reported by the Vietnam Food Association.
Consumers are feeling the strain, as seen in Hanoi where people like one woman have to cut expenses on non-essentials to afford the staple, which now costs about $4 per 3kg, representing a 40% increase.
Prices are expected to stay elevated into 2024 due to the possibility of India extending its export restrictions post-election and ongoing El Niño conditions.