Low-quality rice imports to be restricted
In this article (5)
The Ministry of Industry and Trade is drafting a decree on rice trade to limit the import of low-quality grain.
The volume of low-grade rice imported from India has surged due to low vietnaprices and zero import tax under the ASEAN-India Free Trade Area, potentially affecting Vietnam’s own rice production and food security.
Last year Vietnam imported a million tons of rice from various countries, including over 72% from India, according to ministry statistics.
The low-quality grain, including broken, imported from India is mainly used to make noodles, cakes, animal feed, beer, and liquor.
Vietnam, which exports 6-6.5 million tons of mainly high-grade rice annually to 156 countries and territories, had imported only around 5,000 tons of Indian rice in 2019, according to the ministry.
Pham Thai Binh, general director of Trung An Hi-tech Farming Joint Stock Company, said “Vietnamese farmers’ income is still very precarious. Instead of importing low-quality rice, enterprises can buy rice in the domestic market, helping increase selling prices and farmers’ income.”
According to the draft decree, if rice import volumes increase sharply, potentially affecting domestic production, they will be restricted. Besides, rice traders face stiffer penalties for failure to make quarterly and annual reports on exports and inventories as required.
Questions & Answers
Q.Why has the import volume of low-grade rice from India increased significantly recently?
Why has the import volume of low-grade rice from India increased significantly recently?
The volume has surged due to low prices for Indian rice and the zero import tax enjoyed under the ASEAN-India Free Trade Area agreement. This makes Indian imports more competitive for domestic use.
Q.How will the Ministry of Industry and Trade restrict rice imports if they negatively impact domestic production?
How will the Ministry of Industry and Trade restrict rice imports if they negatively impact domestic production?
According to the draft decree, if rice import volumes rise sharply and potentially affect local production, they will be restricted. The ministry is currently drafting this decree.
Q.What is the primary use of the low-quality rice imported from India into Vietnam?
What is the primary use of the low-quality rice imported from India into Vietnam?
The low-quality grain, including broken rice, imported from India is mainly used to make products such as noodles, cakes, animal feed, beer, and liquor within Vietnam.
Q.What potential negative consequences could a high volume of low-quality rice imports have for Vietnam?
What potential negative consequences could a high volume of low-quality rice imports have for Vietnam?
The increased volume of low-grade rice imports could potentially affect Vietnam’s own rice production and its overall food security. It may also depress domestic selling prices for Vietnamese farmers.
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