Vietnam and China buys Indian rice for first time in decades

As per an article in Bangkok post

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.

Food inflation back with a bang

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 farmers and exporter are big beneficiary.

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.

Food inflation is here and unlike base metals, agricultural items can be substituted leading to rise in the entire agri basket

Leave a Reply

Your email address will not be published. Required fields are marked *