Indian rice exporters reduced rates to settle disputes with Vietnamese buyers, offered to cut so many thousand

export of rice

Indian rice exporters are trying to resolve their dispute with Vietnamese buyers. For this, he is giving a discount of more than $ 100 per ton (about Rs 7500) to the buyers of Vietnam. Because they don’t want to drag the issue further and they don’t want to do much harm to themselves. Madan Prakash, president of the Agri Commodity Exporters Association (ACEA), said, “Indian exporters are offering discounts as there is a fear that their consignments will stop at ports if the dispute continues. So they will be left to pay a heavy late fee.

Prakash faced problems with 500 tonnes of white rice shipped to Vietnam and his firm had to offer a discount. “Our problem was that shipping documents were delayed and our shipments were pending due to bank closures in Vietnam,” he said.

demand more discount

According to The Business Line, trade sources said the discount ranged from $120 to $180 per tonne (Rs 8925-13,375). “When a seller offers a discount of $100, it is natural for the buyer to demand a discount of $110. Rice Exporters Association (TREA) president BV Krishna Rao said, “A discount of $150 (₹11,150) per tonne is normal.”

Rice exports from India to Vietnam, the world’s largest exporter, ran into trouble last month. Because buyers in the Southeast Asian country bargained hard for huge discounts and threatened not to buy the consignment. Vietnamese buyers did not take deliveries after the arrival of the autumn rice harvest, pointing to Covid restrictions and a drop in domestic prices.

Vietnam’s estimated autumn rice harvest, 15.2 million tonnes (mt), began arriving in late June. This could be higher than last year’s initial estimates of 15.06 million tonnes and 15.11 million tonnes.

imports broken rice

Vietnam is the second largest rice importer from India. It imports rice from India for brewing, fodder for poultry and cattle. It started procuring rice from India for the first time in decades in the last financial year. It mainly imports broken rice. Vietnam prefers to buy 100% broken rice, as it is cheaper than other grades.

Export figures have increased continuously

Vietnam imported 385 tonnes of rice worth Rs 85.72 crore from India in the 2019-20 financial year. But in the last financial year it increased to 658.43 crore and 2.93 lakh tonnes of rice was procured. In the first two months of the current financial year, it has imported 1.5 lakh tonnes of rice worth Rs 377.46 crore.

Indian rice exports have been helped by record production during the two seasons (July-June) of the last two financial years. According to the Ministry of Agriculture and Farmers Welfare, the production of rice in July 2019 to June 2020 was 118.87 million tonnes (mt) and it is estimated to be 122.27 million tonnes for this season.