Good news for agriculture, Vietnam bought rice from India for the first time

Vietnam has imported rice from India for the first time. Earlier, both countries are considered rivals in international rice trade and both have been major exporters.

Although Vietnam is the third-largest rice exporter in the world, but the price of rice in the domestic market there has reached the highest level in 9 years. Hence Vietnam had to purchase rice from India due to limited domestic supply.

What will be the effect?

The purchase of rice by Vietnam shows that the supply of this grain in Asia is tight and it also indicates that the price of rice may increase in the year 2021. Its other effect can also be seen that countries that traditionally bought rice from Vietnam and Thailand now turn to India. India is the largest exporter of rice in the world.

Order 70,000 tonnes of rice

Officials of this industry say that Indian traders have received a total order of 70,000 tonnes of rice, which is entirely of piece rice. It will be sent in January-February.

Rice Exporters Association President BV Krishnarao said, “We are exporting Vietnam for the first time. The prices in India are quite attractive. This has become possible due to the huge difference in price.”

Indian rice is very cheap

India is selling slice rice at US $381 to 387 (between Rs 27,800 to Rs 28,400) per ton. On the other hand, in the domestic market of Vietnam, piece rice is being sold at a rate of 500 to 505 US dollars per ton. This attractive price of Indian rice has increased its demand from Asian and African countries.

Vietnam’s total production fell by 1.85% in 2020 compared to 2019. In addition, Vietnam’s rice exports in 2020 are reduced by 3.5% compared to 2019.