In January 2024, Vietnamese rice exporters secured contracts to supply more than 300,000 tons of rice to Indonesia.

According to the Vietnam Trade Office in Indonesia (Ministry of Industry and Trade), the Indonesian government has decided to increase the rice import quota for 2024 by an additional 1.6 million tons.

This decision was made due to domestic rice production shortages in Indonesia, exacerbated by the El Nino phenomenon in 2023, which delayed the main growing season.

As a result, the main rice harvest is now expected to occur in May and June instead of March and April as usual.

With the additional 1.6 million tons of imported rice, the total rice import quota set by the Indonesian government for 2024 will be 3.6 million tons.

To date, the Indonesian Ministry of Trade has issued import licenses for 2 million tons of rice. The license for the additional 1.6 million tons will be issued soon after completing some administrative procedures.

Additionally, the Vietnam Trade Office in Indonesia reports that rice prices in Indonesia have recently surged due to severe supply shortages.

As of February, Indonesia has experienced eight consecutive months of rice deficits due to domestic production falling short of demand.

Rice shortages have been observed in supermarkets. The Indonesian Ministry of Trade has urged people to switch to government-subsidized rice to avoid excessively high prices in the free market.

Retail rice prices in Indonesia are at 80,000 Rp (approximately 5.17 USD) per 5 kg, compared to the government-set ceiling price of 69,500 Rp (4.45 USD) per 5 kg.

According to Indonesian statistics, in January, the country imported 441,930 tons of rice, an 82.19% increase compared to the same period last year, with a total value of 279.2 million USD.

Among the imports, Indonesia sourced the most rice from Thailand (237,640 tons), followed by Pakistan (129,780 tons), Myanmar (41,610 tons), Vietnam (32,340 tons), and Cambodia (2,500 tons).

The Vietnam Trade Office in Indonesia notes that the rice shortage is severe, with the main harvest yet to begin. Additionally, the Ramadan fasting month for Muslims starts in mid-March and lasts for a month, which will likely drive up demand for food.

Therefore, in addition to the 500,000-ton rice procurement tender held on January 17 (where Vietnamese exporters secured contracts for over 300,000 tons), it is expected that the Indonesian government will soon open additional tenders for rice purchases.

Vietnamese rice exporters should closely monitor market information and seize the opportunity to export rice to Indonesia in the early months of the year.

In 2023, Indonesia became the second-largest importer of Vietnamese rice, with an intake of over 1.1 million tons valued at over 640 million USD, representing an 878% increase in volume and a 992% increase in value compared to 2022.

Source: Vietstock