Rice Prices Closed Higher amid Strong Indonesian Demand

On Thursday, rice prices improved as Vietnam made more grain shipments to Indonesia due to more robust demands.

Rough rice futures for May delivery increased by 0.26% to $17.66 per hundredweight on March 30’s Asian afternoon session.

Indonesia plans an additional two million tons of commodity exports to improve its 2023 reserves. It gave Vietnam an opportunity for more exports to the Southeast Asian market.

According to the Indonesian government, these imports will be utilized for their price stabilization program. As a result, it would benefit 21.50 million poor households and other essential purposes. In addition, the country doubled its rice reserve target to 2.40 million tons to ensure food security.

Furthermore, the nation’s logistics bureau was assigned to import 500,000.00 tons of grain. However, it was only able to purchase 60,000.00 tons on March 25. This left its national reserves to drop to 280,000.00 tons.

Additionally, Vietnamese rice exporters were encouraged to contact the bureau to promote the products. The move would be a preparation for an anticipated massive purchase from the country.

The Import-Export Department advised the exporting country to observe market situations and assess risks and opportunities based on analysts.

General Department of Vietnam Customs’ data reported that Indonesia was the third top rice buyer in January and February. The Philippines and China follow it.

Indian Government Authorized Rice Shipments

Government officials permitted the sale of rice to Gambia and Senegal as a special consideration. Exports of this variety were banned on September 08, 2022.

According to a statement from the Finance Ministry to customs commissioners, the Commerce Ministry cleared 1.00 lakh tons of exports. The shipment is for Gambia, while Senegal received 2.50 lakh tons.

Also, the Ministry allowed rice shipments of 9,990.00 tons to Djibouti, Ethiopia. Chennai-based Ruby Overseas would manage the delivery.

As for Gambia, it permitted requests to transport grain from some companies. These include Royal Mirage Consultancy, Sarala Food Pvt Ltd, and Laxmi Group of Industries Pvt Ltd.

Based on experts, shipments are being authorized because of strategic reasons and the involvement of the External Affairs Ministry.