The share of sticky rice in Vietnam’s total rice exports to China fell to 48%, from 74% in the same period in 2021.
Vietnam’s rice exports to China in the first 7 months of 2022 fell sharply by 27.5% in volume and 28.2% in value over the same period last year, only reaching 466,225 tons with a value of USD 242.74 million. The above trade information data from the Ministry of Industry and Trade also shows that the Chinese market is moving to reduce the import of sticky rice from Vietnam.
Accordingly, Vietnam is the largest exporter of glutinous rice to China and this is also the No. 1 sticky rice consumption market of Vietnam. The fact that China maintains the policy of “Zero Covid” blockade to prevent the epidemic has significantly affected the demand for sticky rice, the main export category of Vietnam to this market.
Specifically, in the first 7 months of 2022, the export volume reached 223,464 tons, a sharp decrease of 53% over the same period. The share of sticky rice in Vietnam’s total rice exports to China fell to 48%, from 74% in the same period in 2021.
The market and demand for rice in China have adjusted, thereby affecting Vietnam’s rice exports
However, the positive thing is that China has strongly increased the import of fragrant rice, especially ST21, ST24 rice from Vietnam. Vietnam’s fragrant rice exports to China in the seven months of 2022 increased by 58.6% to 188,459 tons. In addition, Vietnam’s exports of Japonica and white rice to China also increased sharply in the first months of the year.
Reuters quoted a source from China’s Ministry of Agriculture as saying that some areas in the country’s Jiangsu and Anhui provinces were seriously affected by prolonged hot weather. The weather has calmed down after recent rains, but rainfall is unevenly distributed and droughts continue locally. Meanwhile, Jiangsu and Anhui account for about 11.5% of China’s grain production in 2021.
In the August 2022 Report of the US Department of Agriculture (USDA), the agency forecast that China’s rice consumption in the 2022/23 crop year will reach 156.6 million tons, up slightly from 156.29 million tons in the previous year.
Notably, China is expected to continue to be the world’s largest rice importer with a record 6 million tons in 2023. China’s ending rice stocks are expected to fall by 4 million tons in the 2022/23 season to 109 million tons.
According to data from China Customs, with a drop of more than 27% in export volume, Vietnam dropped to the third position in terms of rice supply to the Chinese market (from the number one position in 2021), share of Vietnamese rice in China also decreased from 22.5% to 11.5%.
Instead, India rose to the top in rice exports to China with 1.5 million tons, a sharp increase of 2.6 times over the same period and accounting for 36.9% of China’s rice imports. In addition, China also increased more than 72% of rice imports from Pakistan and Thailand, and tripled the amount of rice imported from Laos…
Since the beginning of the year, China has boosted imports of cheap broken rice from India and Pakistan to replace animal feed rations in the context of high wheat and barley prices due to the Russia-Ukraine conflict. Generally, in the first seven months of 2022, China imported 4.1 million tons of rice, a sharp increase of 43.3% over the same period in 2021. In which, China sharply increased rice imports from India, Pakistan, and Thailand. , Laos… but reduce imports from Vietnam and Myanmar. In July 2022 alone, the country’s rice imports reached 500,000 tons, down 24.2% compared to June 2022 but up 72.4% over the same period last year.
@ Vietnamnet
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Source: Vietnam Insider