Vietnam buys Indian rice for first time in decades: Industry officials

[Pappu_Packitmaar]

https://www.moneycontrol.com/news/business/vietnam-buys-indian-rice-for-first-time-in-decades-industry-officials-6302321.html

The purchases underscore 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.

REUTERS

JANUARY 04, 2021 / 05:08 PM IS  

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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, four industry officials told Reuters.

The purchases underscore 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.

Indian traders have 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, the industry officials say.

"For the first time we are exporting to Vietnam," B.V. Krishna Rao, president of the Rice Exporters Association, told Reuters on Monday. "Indian prices are very attractive. The huge price difference is making exports possible."

Vietnam's 5% broken rice is offered around $500-$505 per tonne, significantly higher compared to Indian prices of $381-$387.

Rice imported from India is mainly used for producing animal feeds and for breweries," said a rice trader based in Ho Chi Minh City.

Dwindling supplies and continued Philippine buying lifted Vietnamese rice export prices to a fresh nine-year high.

Vietnam's total paddy output in 2020 fell 1.85% to 42.69 million tonnes, equivalent to around 21.35 million tonnes of rice, preliminary data from the government's General Statistics Office showed.

The country's rice exports in 2020 were forecast to have fallen by 3.5% to 6.15 million tonnes.

Robust demand from Asian and African countries has also been lifting Indian prices but they are still very competitive due to ample stocks, said Nitin Gupta, vice president of Olam India's rice business.

Vietnam could make more purchases as long as the price difference remains, Gupta said.

In December, the world's biggest rice importer China started buying Indian rice for the first time in at least three decades due to tightening supplies from Thailand, Myanmar and Vietnam and an offer of sharply discounted prices.

In 2020 India exported a record 14 million tonnes of rice, provisional data from the trade ministry showed.

 

[Pappu_Packitmaar]

@Ryzen_renoir I think this is market we need to target...Dump all the rice in the country into the open market and get the export price down and we can sell to rice exporting countries too.

 

[tom bhayya]

breweries and animal feed ki broken rice exporting aa , mana rice vallaki ekkadhu ga 

[Ryzen_renoir]

3 minutes ago, Pappu_Packitmaar said:

@Ryzen_renoir I think this is market we need to target...Dump all the rice in the country into the open market and get the export price down and we can sell to rice exporting countries too.

 

No chance ...the only reason Vietnam/china is buying is because they got historical floods like Hyderabad had and damaged all the crop this year . 

These countries treat food grain as national security , we can't expect to export every year .

We need to move away from rice and focus on  fruit exports . 

India produces 40% of world's mangoes but exports only 1% of world's mangoes . Fruit ,spice and  processed seafood is where india can make tremendous gains . 

Rice / wheat/ maize is a dead market because every country is going to subsidize them locally if possible 

[Ryzen_renoir]

2 minutes ago, tom bhayya said:

breweries and animal feed ki broken rice exporting aa , mana rice vallaki ekkadhu ga 

This year 90% of their crop damaged by floods , they are importing for buffer stocks + other purposes  . 

 

 

[Pappu_Packitmaar]

1 minute ago, Ryzen_renoir said:

No chance ...the only reason Vietnam/china is buying is because they got historical floods like Hyderabad had and damaged all the crop this year . 

These countries treat food grain as national security , we can't expect to export every year .

We need to move away from rice and focus on  fruit exports . 

India produces 40% of world's mangoes but exports only 1% of world's mangoes . Fruit ,spice and  processed seafood is where india can make tremendous gains . 

Rice / wheat/ maize is a dead market because every country is going to subsidize them locally if possible 

Look at the pricing factors, almost 30% lesser than traditional market rates, This is only possible because of years of buying and hoarding.

Vietnam and China are mass producers of rice but end of the day, its the pricing factor that plays a role in commerce. There appears to be a market for cheap rice and India should tap this market, especially Africa and Middle East.

[manadonga]

its like india buying onions 

[Mirage]

https://www.thehindu.com/news/cities/Hyderabad/focus-on-cultivating-crops-with-market-demand-kcr/article31742572.ece

Chief Minister asks agriculture officials to be ready with plans to make farming profitable

The agriculture department should be proactive and formulate the required plans to inculcate a habit of cultivating crops which enjoy a demand in the market, said Chief Minister K.Chandrasekhar Rao here on Wednesday.

The regulated crop cultivation will be coming into effect from this Vaanakalam and this should continue in every season and every year. By cultivating only those crops with demand in market, agriculture will become profitable and farmers will not face the plight of their produce not getting remunerative prices, he said.

Chief Minister who held extensive discussions for three days with agriculture department officials, experts along with Agriculture Minister S. Niranjan Reddy to finalise the strategy for cultivation of crops in the State said that the ultimate aim of this exercise would be to benefit farmers and make agriculture profitable. The official machinery with the cooperation of farmers should make this a success. He also felt that though the State achieved food security, it was lagging behind in nutritional security. A general awareness be created among people on eating nutritious food and farmers be encouraged to cultivate such food crops with high nutritional value.

Mr. Rao instructed the officials to prepare correct estimates on food habits of people in the State and the country and also assess the requirement for various food crops in the State and the country. Similarly, data should also be gathered to find the demand for different crops across the world. Accordingly, the cultivation of crops should be planned. For this, government would appoint Agriculture Products Marketing Committee with experts. The committee would study the demand, marketing and prices of agricultural produce across the world and give its guidance on which crops would be profitable and accordingly cultivation would be taken up.

Modern methods

Equally important is to improve the productivity in the agricultural sector by adopting modern cultivation methods and techniques including using high quality seeds and scientific use of fertilisers and pesticides, he said.

Mr.Chandrasekhar Rao said the government would appoint an agriculture research committee to study and advice the farming community as also set up Cotton Research and Development Centre to help cotton farmers on getting higher yields and productivity through appropriate methods of cultivation of cotton varieties which have good demand. One should also assess if required number of ginning and spinning mills were available in the vicinity of cotton cultivation areas to save on transport cost.

Emphasising on demarcation of crop colonies depending on suitability of the land, he said farmers should be informed about it. A plan should be in place for the State to achieve self sufficiency in vegetable and fruits production particularly near the urban areas as demand for fruits and vegetables was more in urban areas and this would benefit both farmers and consumers.

At present potatoes, garlic and ginger were being imported to meet the demand and their cultivation within the State should be increased. Similarly onions go through seasonal fluctuations in availability and prices every year and cultivation be planned to overcome such situation. The Horticulture department should be transformed in line with the changing circumstances and a special Statistical wing be set up for accurate record of crop production, he said.

[tom bhayya]

2 minutes ago, Mirage said:

https://www.thehindu.com/news/cities/Hyderabad/focus-on-cultivating-crops-with-market-demand-kcr/article31742572.ece

Chief Minister asks agriculture officials to be ready with plans to make farming profitable

The agriculture department should be proactive and formulate the required plans to inculcate a habit of cultivating crops which enjoy a demand in the market, said Chief Minister K.Chandrasekhar Rao here on Wednesday.

The regulated crop cultivation will be coming into effect from this Vaanakalam and this should continue in every season and every year. By cultivating only those crops with demand in market, agriculture will become profitable and farmers will not face the plight of their produce not getting remunerative prices, he said.

Chief Minister who held extensive discussions for three days with agriculture department officials, experts along with Agriculture Minister S. Niranjan Reddy to finalise the strategy for cultivation of crops in the State said that the ultimate aim of this exercise would be to benefit farmers and make agriculture profitable. The official machinery with the cooperation of farmers should make this a success. He also felt that though the State achieved food security, it was lagging behind in nutritional security. A general awareness be created among people on eating nutritious food and farmers be encouraged to cultivate such food crops with high nutritional value.

Mr. Rao instructed the officials to prepare correct estimates on food habits of people in the State and the country and also assess the requirement for various food crops in the State and the country. Similarly, data should also be gathered to find the demand for different crops across the world. Accordingly, the cultivation of crops should be planned. For this, government would appoint Agriculture Products Marketing Committee with experts. The committee would study the demand, marketing and prices of agricultural produce across the world and give its guidance on which crops would be profitable and accordingly cultivation would be taken up.

Modern methods

Equally important is to improve the productivity in the agricultural sector by adopting modern cultivation methods and techniques including using high quality seeds and scientific use of fertilisers and pesticides, he said.

Mr.Chandrasekhar Rao said the government would appoint an agriculture research committee to study and advice the farming community as also set up Cotton Research and Development Centre to help cotton farmers on getting higher yields and productivity through appropriate methods of cultivation of cotton varieties which have good demand. One should also assess if required number of ginning and spinning mills were available in the vicinity of cotton cultivation areas to save on transport cost.

Emphasising on demarcation of crop colonies depending on suitability of the land, he said farmers should be informed about it. A plan should be in place for the State to achieve self sufficiency in vegetable and fruits production particularly near the urban areas as demand for fruits and vegetables was more in urban areas and this would benefit both farmers and consumers.

At present potatoes, garlic and ginger were being imported to meet the demand and their cultivation within the State should be increased. Similarly onions go through seasonal fluctuations in availability and prices every year and cultivation be planned to overcome such situation. The Horticulture department should be transformed in line with the changing circumstances and a special Statistical wing be set up for accurate record of crop production, he said.

U turn taken kadha last week ey govt hands up 

[Ryzen_renoir]

8 minutes ago, Pappu_Packitmaar said:

Look at the pricing factors, almost 30% lesser than traditional market rates, This is only possible because of years of buying and hoarding.

Vietnam and China are mass producers of rice but end of the day, its the pricing factor that plays a role in commerce. There appears to be a market for cheap rice and India should tap this market, especially Africa and Middle East.

Most of Indian rice is not prefered by consumers  (yes even indians don't want to eat most of our rice), we need to promote and raise sticky rise that is preferred by Chinese /south east asian countries to get premium rates . 

But the current predicament in india is we don't have any research in that area and farmers are too poor to go raise them by themselves

[Ryzen_renoir]

8 minutes ago, manadonga said:

its like india buying onions 

Yes last resort .. we imported onions from Egypt / turkey which were not prefered by customers even at lower rates .

Most of them were rotten away at the end cause no one wanted em🙄

[Hydrockers]

Animals ki feed chesedi manam tintunama

[Telugodura456]

6 minutes ago, Ryzen_renoir said:

Most of Indian rice is not prefered by consumers  (yes even indians don't want to eat most of our rice), we need to promote and raise sticky rise that is preferred by Chinese /south east asian countries to get premium rates . 

But the current predicament in india is we don't have any research in that area and farmers are too poor to go raise them by themselves

Even indians dont want ? malla yem rice thintaru? as far as i know everyone eats sona masoori.

[Picheshwar]

2 minutes ago, Hydrockers said:

Animals ki feed chesedi manam tintunama

[Pappu_Packitmaar]

1 minute ago, Telugodura456 said:

Even indians dont want ? malla yem rice thintaru? as far as i know everyone eats sona masoori.

Sona Masoori is not produced all over India.  may be 10-20% of the total production output is fine rice.