In a strategic move to stabilize its domestic food market, Bangladesh has entered into an agreement to import 100,000 tonnes of white rice from Vietnam. This initiative aims to balance supply and demand within the country and ensure food security for its population.
Details of the Agreement
The contract, facilitated by the Vietnam Southern Food Corporation (Vinafood II), sets the selling price at $474.25 per tonne, which is notably higher than typical international market prices for white rice. This premium reflects the quality and reliability associated with Vietnamese rice exports. The Bangladesh Public Procurement Authority in Dhaka approved the purchase proposal on January 28, 2025, paving the way for the import activities to commence.
Bangladesh’s Rice Production and Import Trends
Despite being one of South Asia’s largest rice producers, Bangladesh occasionally resorts to imports to balance its supply and demand. In the fiscal year 2022-2023, the country produced approximately 39.1 million tonnes of rice. However, to meet its domestic needs, Bangladesh imported about 1.05 million tonnes of rice during the same period, sourcing from countries such as India, Thailand, Vietnam, and Myanmar. This import volume marked a decline from the 2.65 million tonnes imported in 2021.
Vietnam’s Position in the Global Rice Market
Vietnam has solidified its status as a major player in the global rice market. In 2023, the country exported approximately 8.13 million tonnes of rice worldwide, generating an export value of $4.78 billion, which reflects a 35% increase from the previous year.
This growth underscores Vietnam’s commitment to enhancing rice quality and meeting international standards, making it a preferred supplier for many nations, including Bangladesh.
Strategic Implications
The import of 100,000 tonnes of rice from Vietnam is a component of Bangladesh’s broader strategy to stabilize food prices, especially as the country implements its Open Market Sales (OMS) program. Starting in February 2025, the government plans to distribute approximately 907 tonnes of rice daily through 906 centers nationwide, including the capital Dhaka and other major cities. This initiative aims to provide low-income populations with access to essential food supplies at affordable prices, selling rice at 30 Tk per kg (approximately $243 per tonne).
This agreement not only reinforces the strong trade relations between Bangladesh and Vietnam but also highlights the importance of international cooperation in ensuring food security. For Bangladesh, importing rice serves as a vital tool to manage domestic supply and demand fluctuations, thereby maintaining market stability. For Vietnam, exporting rice to Bangladesh and other countries enhances its economic value and encourages farmers to cultivate high-quality rice that meets export standards.
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