Vietnam, the world’s second largest rice exporter, this month made a surprising move by starting to import the grain from India. It is importing the cheaper Indian rice to meet domestic demand while saving its own output, which is currently selling at a multi-year high, for the export market.
Vietnamese rice prices recently have been outperforming those of Thailand, which traditionally attracted a high premium. One reason is that Vietnam has concluded a free trade agreement with the EU, opening the door to the lucrative European market. The recently signed Regional Comprehensive Economic Partnership (RCEP) will also open more markets for higher-priced rice.
Vietnam is in a good position to take advantage of these opportunities, having worked hard to improve the quality and variety of its rice. In addition to producing more high-quality fragrant rice, Vietnamese…
