HANOI (Commodity Online): Vietnam faces difficulties in finding rice importers though Thailand demand for Thai rice reduced.
Thailand, Largest exporter of rice, had earlier raised the Minimum Export Price (MEP) of rice which made the Thai rice costlier for the importers.
As a result, the importers have turned to other major producers of rice like, India, Pakistan, Vietnam etc.
As the market for rice is presently dull on account of higher global production, the importers has been approaching Vietnam to look for rice at negotiable prices and some importers negotiated a lower price than the ceiling price set by Vietnam Food Association (VFA).
Vietnam has exported more than 279,200 tons of rice in January, 2012 and exporters have just signed a contract for 1.1 tonnes for the first quarter this year.
While, it was 1.8 million tonnes in the same period last year.
Meanwhile, India is also giving though competition for Vietnam as India's rice production has touched a records level of 102 million tons and domestic consumption is expected to be around 95 million tons.
The surplus is expected to be exported and the price offered by the rice traders from are far less than that of Thailand.
Other major chanllenge is from Myanmar, who is planning to export around 1.5 million tons this year.
Vietnams two major targets are Asia and Africa.
