Simultaneously, the South Asian country also moved to reduce the export duty placed on basmati rice from 20% to 10%.
The removal of the rice export ban is likely to make countries such as Pakistan, Thailand, and Vietnam adjust prices for competition, which in turn will cool down rice prices in the global market.
At present, the Vietnamese export price of 5% broken rice stood at US$560 per tonne, down US$20 compared to last week.
Similarly, the export price of Thai rice has also dropped to US$550 per tonne, the lowest level recorded in more than a year. In addition, India's return to the market will exert further pressure on popular rice varieties such as 5% and 25% broken rice from the nation.
However, insiders have pointed out that Vietnamese rice prices are unlikely to fall below US$500 per tonne due to an insufficient domestic supply source, especially when this year's autumn-winter crop have been affected by climate change, which in turn will lead to a reduction in productivity.
India's rice export ban was initially implemented from July, 2023 with the aim of controlling domestic rice prices amid dry weather due to the impact of the El Nino weather phenomenon, thereby raising concerns about rice supply shortages.
According to information given by the General Department of Vietnam Customs, by mid-September, Vietnam’s rice export volume reached nearly 6.5 million tonnes with a value of over US$4 billion, up 6.2% in volume and 21.2% in value against the same period from last year.
With this result, the country has completed more than 80% of the annual export plan and is expected to fulfill this year's target of 7.6 million tonnes of rice.
