Viet Nam exports rice to Indonesia

Oct 19th at 12:11

19-10-2012 12:11:33+07:00

The Southern Food Corporation (Vinafood 2) has signed a deal with the Indonesian Bureau of Logistics (Bulog) to export 300,000 tonnes of 15-per-cent broken rice to Indonesia by the end of this year, an official of the Viet Nam Food Association (VFA) has confirmed.

Truong Thanh Phong, VFA chairman, said the rice exports would be delivered to Indonesia from the end of October through to December, aligning with the autumn-winter rice crop harvesting period in the Cuu Long (Mekong) Delta region.

The Indonesian Government had signed a memorandum of understanding with Viet Nam agreeing to import 1.2 million tonnes of rice from Viet Nam.

Phong said that this is the first government contract to export Vietnamese rice to Indonesia this year. Rice is a key export product for Viet Nam, and annually it accounts for 50 per cent of the value of trade with Indonesia.

Now Indonesia, along with Malaysia and the Philippines, are beginning to change the ways they import rice from Viet Nam. In the past they have always signed Government contracts, but recently Indonesia has permitted private enterprises to import rice via auctions in place of signing Government contracts. The enterprises then can sign commercial contracts with foreign partners to import rice for the nation.

Phong said that so far this year Viet Nam has exported more than 6 million tonnes of rice, earning US$2.6 billion.

The VFA fixed floor prices for rice exports from October 10. The price is currently at $460 per tonne of 5-per-cent broken rice, $455 per tonne of 10-per-cent broken rice, $445 per tonne of 15-per-cent broken rice and $435 per tonne of 25-per-cent broken rice

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