“The rice quality is so poor that it is not good for direct consumption for humans, but only for producing animal feeds and beer”. Traders in Vietnam said the rice from India had been stockpiled in government reserves since 2016/17 and its relatively cheap price reflected low quality. Vietnam announced last year it would stockpile 270,000 tonnes of rice to ensure food availability amid coronavirus-driven supply chain disruptions worldwide. Traders said the global pandemic has also prompted Vietnam and other countries to stockpile rice. The decreasing supplies will heighten concerns about food insecurity with sub-Saharan Africa among the areas where import demand has been increasing due partly to population growth.Ĭhronic and acute hunger is on the rise, impacting vulnerable households in almost every country, with the COVID-19 pandemic reducing incomes and disrupting supply chains, according to the World Bank. ![]() Vietnam’s 5% broken rice is offered around $500-$505 per tonne, significantly higher compared to Indian prices of $381-$387. The huge price difference is making exports possible.ĭeclining supplies and continued Philippine buying have lifted Vietnamese rice export prices to a fresh nine-year high. Krishna Rao, president of the Rice Exporters Association, said that for the first time we are exporting to Vietnam and Indian prices are very attractive. Indian traders have been contracted to export 70,000 tonnes of 100% broken rice for January and February shipments at around $310 per tonne on a free-on-board (FOB) basis.ī.V. The purchases highlight tightening supplies in Asia, which could lift rice prices in 2021 and even force traditional buyers of rice from Thailand and Vietnam to switch to India – the world’s biggest exporter of the grain. Local feed mills are likely to use locally produced corn and broken rice for feed production.Vietnam, the world’s third-biggest exporter of rice has started buying the grain from rival India for the first time in decades after local prices jumped to their highest in nine years amid limited domestic supplies. The forecast for 2021-22 corn imports remains unchanged at 1.5 million tonnes, down 22% from 2020-21. The FAS forecast for 2021-22 corn production remains unchanged at 5.3 million tonnes, down 4% 2020-21 due to reduced off-season corn acreage. In addition, the government of Thailand announced the temporary removal of import restrictions on feed wheat between May 10 and July 31, 2022, which could increase demand for feed wheat imports. Traders are expecting strong demand for poultry exports in line with the economic recovery, which will lead to an increased demand for feed wheat and other feed ingredients in poultry production. “In addition, bakeries have slowed production of bakery goods due to a 20% increase in production costs.”įAS expects that imports of feed wheat will increase to 1.6 million tonnes, up 14% from the previous year. “Flour mills are cautious in building up inventories of milling wheat and flour due to concerns about high import prices of milling wheat,” FAS said. ![]() Despite the reduction, 2022-23 wheat imports are still 8% higher than 2021-22.įAS revised down milling wheat imports to 1.1 million tonnes, unchanged from the previous year despite an expected increase in the number of foreign tourists. Wheat imports for 2022-23 have been revised down to 2.7 million tonnes, as milling wheat demand has decreased more than growing demand for feed wheat. ![]() “Traders anticipate increased demand for Thai rice for the remainder of 2022 as current prices for Thai rice are competitive to other exporting countries.” “The weakening of the Thai baht has made Thai rice export prices attractive and competitive,” FAS said.
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