In the first 10 months of the year, Vietnam spent nearly 1.2 billion USD to import rice, an increase of nearly 73% over the same period last year and a record level ever.

According to the General Department of Customs, in the past 10 months, Vietnam exported nearly 7.8 million tons of rice, earning about 4.86 billion USD – the highest level in history. The volume of rice export increased by more than 10% and the value increased by about 23% compared to the previous year.

On the contrary, rice imports also increased dramatically. In 10 months, Vietnamese businesses spent nearly 1.2 billion USD to import rice, an increase of 72.9% over the same period. In October alone, import value reached 148 million USD, an increase of 225% compared to October 2023.

The reason why rice imports increased sharply is because the supply from India increased again, meeting the domestic demand for low-grade rice when Vietnam is prioritizing the production of high-quality goods. “Importing low-grade rice for production is reasonable,” assessed the Vietnam Food Association.

In addition, businesses said domestic farming trends have changed, as farmers switched to growing fragrant rice for export, and the need to make vermicelli and pho only requires cheap rice with good blooming. Therefore, businesses import this type of rice to reduce input costs. Currently, most imported rice is cheap broken rice from India, Cambodia, Myanmar, and Pakistan at lower prices than domestically.

“In addition to meeting production needs, some companies also import more rice from neighboring countries to keep up with year-end orders,” a business said.

Leaders of the Ministry of Agriculture and Rural Development affirmed that importing rice does not affect food security. Vietnam still exports millions of tons of rice every year and imports cheap rice up to a million tons to meet diverse market needs.

India’s loosening of exports has caused world rice prices to plummet. On October 30, the price of 5% broken rice in Vietnam was 524 USD per ton, while in Thailand and Pakistan it was 486 USD and 461 USD per ton, respectively. India’s 5% broken rice price dropped sharply to 444 USD per ton, the lowest among the top 4 rice exporting countries.

Currently, the prices of 5%, 25% and 100% broken rice from Thailand, India and Pakistan are all lower than the price of the same type of rice in Vietnam by 6-72 USD per ton.

Source: VNEXPRESS