Vietnamese companies successfully bid for three batches of Indonesia’s 500,000-ton rice tender, totaling 85,000 tons, accounting for 17% of the total.
HANOI – Vietnamese companies won three lots totaling 85,000 tonnes, or 17 percent of the total tendered volume, in Indonesia’s massive 500,000 tonne rice tender in October, rice market news website SSRicenews reported.
Indian companies also won three contracts totaling 80,500 tonnes, or 16% of the total tender, while companies from Thailand and Cambodia were awarded contracts totaling 200,500 tonnes, or 40% of the total.
The specific winning bid price and the name of the winning company have not yet been fully announced.
Indonesia completed the purchase at a more favorable price due to India’s participation, the report said. However, compared with other suppliers such as Vietnam and Thailand, India’s rice quality is lower, so its winning rate is relatively low.
For Vietnam, the number of bidding companies is relatively small due to limited supply.
The results of the tender are expected to help prevent a sharp fall in global rice prices after India abolished the minimum export price for non-basmati white rice.
The Vietnam Food Association (VFA) said that before the results of the Indonesian rice tender were announced, the price of 5% broken rice in Vietnam was US$534 per ton, while that in Thailand was US$506, Pakistan was US$474 and India was US$453.
Vietnam’s rice exports are expected to hit a record high of about $5 billion this year as demand from several large and traditional markets such as the Philippines and Indonesia remains strong.
In order to further expand the rice export market, the Import and Export Department under the Ministry of Industry and Trade of Vietnam said it will continue to implement flexible trade promotion activities to enhance rice exports in Vietnam’s traditional markets while tapping into niche markets for fragrant rice and high-quality rice including the European Union, South Korea, the United States and North America.
In addition, Vietnam will maintain market information channels through its overseas trade representative offices to closely monitor world market trends, especially the situation in major markets.
