According to two trade sources, Vietnamese exporters have renegotiated higher rates for about 500,000 metric tonnes of rice after world prices reached 15-year highs as a result of India’s embargo on exports last month.
This is the first evidence that importers are paying extra for one of the most commonly consumed essentials in the world due to tighter supplies after India’s unexpected ban on rice.
Prior to India banning white rice shipments in July, importers, including Indonesia and the Philippines, paid between $30 and $80 a tonne more than agreements negotiated at about $550 a tonne for fragrant Vietnamese rice, according to brokers based in Singapore.
Compared to the pricing set before India’s limits, this increases dealers’ earnings by $15 to $40 million.
According to reports, this month, about 200,000 tonnes of rice have been delivered, while 300,000 tonnes are still waiting to be loaded at Vietnamese ports.
Since India, which produces 40% of the world’s rice, prohibited non-basmati white rice exports last month, rice prices have increased by about 20% to 15-year highs. The supply from the international market have been cut by 10 million tonnes, or 20%, as a result of India’s decision.
