Vietnamese enterprises should seize the opportunities to increase rice exports to Indonesia which has allocated an additional rice import quota of 1.6 million tonnes for 2024 as dryness linked to the El Nino delayed harvest in the country, according to the Vietnam Trade Office in Indonesia.

The Indonesian Ministry of Trade has granted approval for the import of 2 million tonnes of rice, and it will soon issue import certificate for an additional 1.6 million tonnes after completing related administrative procedures.

Vietnamese Trade Counsellor Pham The Cuong said that rice prices in Indonesia have increased significantly in recent days due to supply shortage.

Rice production in Indonesia has experienced a deficit as compared to consumption in the past eight months, he said, adding supermarkets have suffered rice scarcity.

According to the Statistics Indonesia (BPS), the country splashed out US$279.2 million on importing over 441,930 tonnes of rice in January, including 41,610 tonnes from Thailand, 32,340 tonnes from Vietnam and 2,500 tonnes from Cambodia.

Last year, Indonesia was the second largest rice importer of Vietnam as it purchased 1.1 million tonnes of grain, up 878% year-on-year.

Demand for rice in the country will increase as Muslims will celebrate their month-long Ramadan festival in March, while it is not time for the main crop to be harvested.

The Indonesian Government will issue a tender to purchase rice soon after the one on January 17 when Vietnamese enterprises won bid to supply more than 300,000 tonnes to this market.

The Vietnam Trade Office recommended Vietnamese rice exporters to keep a close watch on the market information and capitalise on all opportunities to enhance rice shipments to Indonesia right from the beginning of the year.

Last year, Vietnam shipped more than 8.13 million tonnes of rice worth US$4.7 billion abroad in 2023, up 14.4% in volume and 35.3% in value year-on-year. Since the outset of the year, the country has gained US$466.6 million from exporting more than 663,200 tonnes of rice, rising 14.4% in volume and 53% in value from the same period last year.

VNA

Published Date: February 28, 2024