Vietnamese exporters renegotiate higher prices for rice after Indian ban-traders

SINGAPORE: Vietnamese exporters have renegotiated higher prices for around 500,000 metric tons of rice, two trade sources said, as global prices climbed to 15-year highs following India’s ban on overseas sales last month.

This is the first confirmation of rice prices climbing in the wake of India’s surprise ban with importers paying more for one of the world’s most widely consumed staples amid tightening supplies.

Importers, including Indonesia and Philippines have paid between US$30 and US$80 a ton above deals signed at around US$550 a ton for fragrant Vietnamese rice before India banned white rice exports in July, the Singapore-based traders said.

This gives sellers additional income of around US$15 million to US$40 million compared with prices agreed before India’s curbs.

“Buyers have agreed to pay higher prices for some of cargoes which they bought for August shipment,” said one trader at an international trading company. He added that around 200,000 tons of rice has been shipped this month while 300,000 tons is yet to be loaded at Vietnamese ports.

Global rice prices have jumped by around 20 per cent to 15-year highs since India, which accounts for 40 per cent of world supplies, banned non-basmati white rice exports last month. India’s decision has reduced 10 million tons or 20 per cent of the supplies from the international market.