Rice bags loaded for export at a Kiên Giang Import-Export Co warehouse in Kiên Giang Province. — VNA/VNS Photo

HÀ NỘI/ JAKARTA — Việt Nam and Thailand will be the two main rice suppliers for Indonesia's upcoming purchase of 1.5 million tonnes of rice.

Indonesian Acting Minister of Agriculture Arief Prasetyo Adi confirmed the information to the Indonesian press after Indonesian President Joko Widodo's announcement last Sunday that the country would need an additional 1.5 million tonnes of national rice reserves from now until the end of the year, beyond the 2 million tonnes of rice reserves imported since the beginning of the year until now.

All necessary licences for the import of 1.5 million tonnes of rice had been issued by the relevant Indonesian authorities and the import would be carried out from the end of this month.

The fact that Indonesia chose Việt Nam as the main supplier for its rice purchases further affirms the position and reputation of the quality of Vietnamese rice.

Việt Nam's rice supply is always a reputable source, winning the trust of the Indonesian Government and consumers in the context that Indonesia is facing a shortage of domestically produced food output due to the impact of the El Nino phenomenon.

The Indonesian Government will also increase imports as a solution to curb price hikes of food, especially corn, sugar, and rice, President Joko Widodo stated at a cabinet meeting on Monday.

Talking to the media after the meeting, Trade Minister Zulkifli Hasan said the prices of sugar and corn were gradually increasing given the current global situation, such as conflicts and El Nino phenomena.

He said that Indonesia would import 250,000 tonnes of corn for the animal feed industry. Meanwhile, it would wait for prices to decrease before deciding to import sugar.

Sugar importers only registered to import about 30 per cent of the total allocated sugar import quota, he added.

Notes for Vietnamese businesses to make the most of opportunities

The Việt Nam Trade Office in Indonesia recommends that to make the most of this opportunity, Vietnamese rice exporters should pay attention to the previous guidance of the Ministry of Industry and Trade (MoIT) on exporting rice to the Indonesian market.

Accordingly, rice export traders actively monitor the market situation, fully evaluating opportunities and risks to develop a transaction plan.

Traders sign appropriate contracts, ensuring export efficiency and contributing to the consumption of all paddy and rice goods for farmers at favourable prices.

In addition, it is necessary to pay attention to plans to limit  risks related to price, payment and delivery in the context of the world trade situation being affected.

The General Department of Việt Nam Customs announced on Tuesday that the country's total rice exports to the Indonesian market in the first nine months of this year reached 884,177 tonnes with a value of US$462 million, an increase of 17.7 times in quantity and 19.2 times in price.

Overall, Việt Nam's export turnover of goods to the Indonesian market gained a value of $3.79 billion in the first nine months of the year, a year-on-year growth of 11 per cent.