Vietnam And Thailand Dominate Rice Exports Following India's Ban

(MENAFN- KNN India) New Delhi, Jan 12 (KNN) Vietnam and Thailand are experiencing a significant increase in rice exports due to restrictions imposed by India, the world's largest rice supplier.

Vietnamese Prime Minister Pham Minh Chinh emphasised the importance of agriculture in the economy, and despite challenges in other export sectors like smartphones, record rice export volumes stand out as a positive development.

The surge in exports from Vietnam and Thailand is a direct result of India's ban on non-basmati white rice exports since July.

While India justified the move as a measure to ensure domestic supply and control prices, some speculate it could be a strategy ahead of the upcoming general election in spring.

India typically contributes about 40 per cent of global rice exports, with major buyers including Iran, Saudi Arabia, China, and several African countries.

The ban led to a significant increase in rice prices, with benchmark export prices rising by 15 per cent in August, reaching USD 645 per tonne, according to the United Nations Food and Agriculture Organization.

World rice prices, as reported by the Vietnam Food Association, have risen between 15 per cent to 25 per cent.

Forecasts suggest that rice prices may remain elevated in 2024, and there is uncertainty about whether India will continue export restrictions after the election.

(KNN Bureau)

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