Vietnamese companies secure three lots in Indonesia's 500,000-tonne rice tender

Indian businesses also have won three lots totalling 80,500 tonnes, accounting for 16% of the tender. Meanwhile, companies sourcing rice from Thailand and Cambodia have won contracts for 200,500 tonnes, representing 40% of the total volume.

Specific details on winning bids and the names of the businesses have yet to be fully disclosed.

Reports indicate that Indonesia secured this purchase at a more favourable price due to India's participation. However, India's rice quality falls short compared to other suppliers like Vietnam and Thailand, resulting in a lower tender success rate.

For Vietnam, limited supply led to fewer participants in the bidding.

This tender outcome is expected to prevent a sharp drop in global rice prices following India’s removal of the minimum export price for non-Basmati white rice.

The Vietnam Food Association (VFA) said that before the results of Indonesia's rice bid were announced, Vietnam’s 5% broken rice was priced at US$534 per tonne, compared to US$506 in Thailand, US$474 in Pakistan and US$453 in India.

Vietnam's rice exports are expected to reach a record turnover of about US$5 billion this year, as high demand from many large and traditional markets, such as the Philippines and Indonesia, continues.

To develop the rice export market, the Import-Export Department under the Ministry of Industry and Trade said that it will continue to implement flexible trade promotion activities to strengthen exports with Vietnam's traditional markets while exploiting existing niche markets with fragrant and high-quality rice, including the EU, the Republic of Korea, the US and North American countries.

In addition, it will maintain market information channels via Vietnam trade offices abroad to closely follow developments in the world market situation, especially in major markets.