Among many types of rice traded in the global market nowadays, long grain rice varieties with appetizing flavor are the most popular. Hence, many importers are seeking benefits from trading with long grain rice exporters around the world.
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Top 3 long grain rice exporters
Long grain rice is the type of rice with a grain length over 6.5mm. Though different long grain rice varieties have different tastes and aromas, most of them are appetizing to everybody. Hence, long grain rice varieties are now the staple food of 3.5 billion people around the world.
Total global rice consumption 2018-2020
The figures of global rice consumption from 2018 to 2020 reveal that the demand for rice in general and long grain rice in particular grows significantly.
The growing demand for long grain rice leads to the increasing number of long grain rice exporters. Nowadays, three dominating long grain rice country are Vietnam, India, Thailand.
India
India is regarded as one of the biggest long grain rice exporters in the world, with over 22 million tons of rice exported annually. Long grain rice from India is now widely cultivated in J & K, Himachal Pradesh, Punjab, the states of Haryana, Delhi,, Uttarakhand, and western Uttar Pradesh.
India is the homeland and also the biggest exporter of Basmati rice, one of the most famous varieties of long grain rice in the world. Indian Basmati rice accounts for 85% of the total Basmati rice exported in the global market. The price of long grain rice from India, compared to rice from other countries, is fairly affordable. In 2019, the average price of long grain rice from India is FOB 358-362 USD/MT ( Source: VFA).
Indian long grain rice
India possesses many advantages to be one of the major long grain rice exporters, especially Basmati rice owing to some factors:
- With a long history of over 250 years cultivating Basmati rice, Indian farmers have plenty of experience growing this type of rice.
- Wide cultivation areas for Basmati rice which is estimated at 2.1 million hectares.
- Every year, India produces 5 million metric tons of Basmati rice, hence exceeds the domestic demand and exports 7.2 million tons.
- The Agricultural and Processed Food Products Export Development Authority (APEDA) of India has several policies to support the long grain rice exporters. In particular, they hold a promotion campaign to advertise the Indian long grain brands and prepare a strategy for product 4. diversification and value addition in long grain rice.
- India is also located near major consumer markets of Basmati rice such as Saudi Arabia, Iran, and UAE. Hence, the Basmati can be delivered more easily from India to these countries.
With these advantages, there are more and more countries join in the long grain rice export industry.
Vietnam
Following India, Vietnam is now the second largest long grain rice exporter in the global rice market with 6.25 million tons of rice exported. Some popular long grain rice varieties from Vietnam are IR5451, ST line, Jasmine, OM18, Nang Hoa, and DT8 Dai Thom. These types of rice are mainly cultivated in the Mekong Delta region.
Vietnamese long grain rice
The price of long grain rice, in comparison with rice of other exporters, is reasonable and stable. In 2019, the average price of Vietnamese long grain rice is FOB 353-357 USD/MT (Source: VFA).
Vietnam has several advantages in exporting long grain rice:
- Vietnam has a history of over 9000 years growing rice hence farmers are the experts in cultivating rice.
- Vietnam supplies a wide range of long grain rice from high-quality varieties like ST line, Jasmine rice to normal varieties such as OM5451, OM18 , thus long grain rice exporters have more choices of products to export.
- The massive production of Vietnamese rice at 42.69 million tons allows Vietnamese suppliers’ rice to export 6.25 million tons of rice in general and 2.16 million tons of long grain rice in particular.
- The Vietnamese government has several policies to support long grain rice exporters and producers like eliminating regulations about warehouse sizes, encouraging traders to invest in high-value long grain rice. In addition, Vietnam also signed several trade agreements to help Vietnamese rice penetrate foreign markets such as EVFTA, EEC, UKFTA,etc.
- Vietnam has a special location which is near major importing countries such as China, the Philippines. Hence, long grain rice from Vietnam can be delivered rapidly and easily to these markets.
Thailand
Ranked third in the list of the largest long grain rice exporters in the world, Thailand distributed 5.7 million tons of rice in 2020. Some popular long grain rice from Thailand are varieties of jasmine rice from Thailand such as Thai Hom Mali Rice, Thung Kula Jasmine Rice, etc. The Central region and Northern region are two most important areas cultivating Thai long grain rice.
Thai long grain rice
Owing to the brand of a prestigious exporter, long grain rice from Thailand is usually more expensive compared to rice from other exporters. In 2019, the average price of long grain rice from Thailand is FOB 425-429 USD/MT (Source: VFA).
When it comes to exporting long grain rice, Thailand possesses several advantages
- Thai people have produced rice since 1500 B.C, hence the farmers have plenty of experience cultivating rice.
- With 9.2 million hectares of growing areas, in 2020, Thailand yielded 20 million tons and exported 5.7 million tons of rice. In particular, 65% of rice exported from Thailand are long grain rice varieties, equivalent to 3.7 million tons.
- The Thai government has several policies to support long grain rice exporters. Exceptionally, since 1986, the Thai government has continuously provided subsidies for rice exporters to boost the Thai rice export volume.
- Thailand is also located near target markets like the Philippines, China, hence, the long grain rice from Thailand can be delivered fast and smoothly to these countries.
Long grain rice exporters: Long grain rice varieties and wholesale prices
There are many rice types from long grain rice exporters with distinctive features and benefits that traders should consider investing in.
Basmati rice
Basmati is a famous rice variety that is majorly cultivated and supplied by long grain rice exporters from India and Pakistan. The unique aroma and reasonable prices are the outstanding features that make Basmati rice popular in many markets like Saudi Arabia, Iran, and UAE. Pakistan and India are the two largest Basmati rice exporting countries in the world. Currently, the average price of Basmati rice in India is around FOB 119.4 USD/MT while that of Pakistan Basmati rice is FOB 791,4 USD/MT.
Basmati rice
Jasmine rice
Jasmine rice belongs to the fragrant rice varieties of long grain rice, widely grown in Thailand, Vietnam, Cambodia, and Laos. Jasmine rice has a delightful scent and sweet flavor that appeal to many customers. China, the Philippines, the Middle East, and African countries are the major markets of Jasmine rice. Meanwhile, Thailand and Vietnam are two major exporting countries of Jasmine rice. Currently, Jasmine rice supplied by long grain rice exporters is sold at FOB 600-680 USD/MT.
Jasmine rice
IR 504
IR 504 is one of the most popular varieties supplied by long grain rice exporters from Vietnam. IR 504 has an average length of 6.2mm and a dull white color. Exceptionally, IR 504 is puffy when cooked and can be made into rice flour. Malaysia, the Philippines and Cuba are three major markets consuming IR 504 rice. Currently the price of IR 504 is FOB 480-540 USD/MT.
IR 504
OM5451
OM 5451 is another type of rice supplied by long grain rice exporters, widely cultivated in the Mekong Delta region, in the south of Vietnam. Vietnam, hence, is also the largest exporter of this type of rice. OM 5451 has a long, thin shape and a tender texture when cooked. OM 5451 is very popular in the Philippines, Timor-Leste, Cuba, etc. Exceptionally, 60% of OM5451 rice from Vietnam is now imported to the Philippines. The average price of OM5451 rice is FOB 480 -570 USD/MT.
OM5451
Other types
There are other rice varieties exported by long grain rice exporters such as:
Carolina Gold rice from the USA, Mogra rice from India, OM18 from Vietnam that traders should also consider.
Other types
Long grain rice exporters: Factors affecting the prices of long grain rice
Several factors are affecting the prices of products supplied by long grain rice exporters.
Production
The production of long grain rice directly affected the export volume of rice, thus indirectly affecting the prices of long grain rice in the market.
Production, export volume and price of Vietnamese long grain rice 2018-2020
The data of production, export volume, and the average prices indicates that if the export volume increases, the price of long-grain rice will decrease and vice versa. Between 2018 and 20219, because the export volume increased by 0.22 million tons, the price of Vietnamese long grain rice exporters decreased from 411,8 USD/MT to 340,2 USD/MT. On the other hand, between 2019 and 2020, as the export volume decreased by 0.9 million tons, Vietnamese long grain rice exporters increased the price from 340.2 USD/MT to 439.6 USD/MT.
Transportation
Most long grain rice exporters deliver their rice products by sea freight. Hence, the increasing freight rates can raise the prices of long grain rice in the market. In 2020, freight rates delivering long grain rice from India to West Asia, which made up 75% of trade, rose about 243% after the lockdown, equivalent to $1,200-1,500 per container. In addition, freights to Caribbean countries increased by 344% to $4,200-4,500 per container in the same period. Thus, the average price of Basmati rice offered by long grain rice exporters rose from 8400 USD/MT to over 8864 USD/MT between 2019 and 2020.
Transportation of long grain rice
Supporting policies
As exporting rice is an important revenue stream for countries like Vietnam, India, Thailand, hence, the governments of these countries have several policies to support their long grain rice exporters.
Exceptionally, since 1986, Thailand has abandoned the tax policies and provided discounted credit rates for rice exporters to subsidize their export costs. In 1995, the Thai government provided subsidies of 10 USD/MT for low and medium-grade rice exports and offered private long grain rice exporters a cost subsidy of 250 baht per ton for rice storage and rice quality improvement. Thanks to the elimination of export taxation and the offer of export subsidies, the average price of long grain rice from Thailand, currently is fairly affordable at 383 USD/MT, compared to that of India at 367 USD/MT and Vietnam at 443 USD/MT.
Moreover, these exporting countries also signed several trade agreements to boost the export of long grain rice. Vietnam has signed trade agreements such as EVFTA, UKFTA, etc. In particular, Vietnamese long grain rice is taxed 0% in the UK according to UKFTA. Thus, Vietnamese long grain rice has more competitive advantages in the UK compared to other rice.
Supporting policies for long grain rice
Demand
The demand is another factor affecting the prices of products from long grain rice exporters. If the demand for long grain prices increases, the price will rise and vice versa. In 2020, the export volume of rice from Thailand increased by approximately 1 million tons, from 24 million tons to over 25 million tons. Hence, the average price of long grain rice grade B from Thailand rose from 434 USD/MT to over 514.6 USD/MT.
Demand for long grain rice
Long grain rice exporters: An useful guide to find a reliable long grain rice exporter
There are certain aspects that traders should consider before trading with long rice wholesalers.
Long grain rice exporters: Features of a reliable one
Trustworthy long grain rice exporters must have the following features.
- Legal business licenses: Having legal business licenses is the must-have feature of any rice exporter. Prestigious long grain rice exporters must possess legal business licenses from the government.
- Clear address: Another feature of reliable long grain rice exporters is clear addresses. Traders should carefully check whether the exporters have an existing location of offices, showrooms, etc.
- Certificated products: To measure the quality of the products, traders can ask long grain rice exporters to provide important certifications such as USDA Organic, FDA, FFL, Organic, Global Gap, etc.
- Feedbacks from former customers: Traders should take into account the feedback from the former customers to evaluate the quality of products and services of the long grain rice exporters.
Features of a reliable long grain rice exporter
Long grain rice exporters: Sign of a scammers
Besides reliable long grain rice exporters, many scammers can deceive traders. There are some signs to identify them.
- Vague information of the exporters: Reliable long grain rice exporters, as mentioned above, must have important features like legal business licenses, clear address,etc. On the other hand, exporters who don’t have or try to hide this information may be scammers.
- Offering long grain rice at a too low price: Though the prices can fluctuate over time, however, if the price that long grain rice exporters offer is too low, then traders should consider carefully before trading. Offering products at too low a price is a way scammers use to deceive rice traders.
- Unprofessional working behavior: Urging payment, postponing transportation, hesitating to provide basic information are some signs that the long grain rice exporters are scammers.
Sign of scammers
Long grain rice exporters: Where to find them
Finding long grain rice exporters is now easier than ever thanks to the exploration of the Internet and the opening of many rice exporting countries.
- On the internet: Nowadays, traders can find long grain rice exporters by joining trading groups on social media like Facebook, Linkedin or searching on e-commerce platforms such as ec21, go4world, Alibaba, etc. However, traders should thoroughly check the information of the exporters from the Internet to prevent scammers.
On the Internet
- From trade fairs:There are many trade fairs that rice traders can attend to find reliable long grain rice exporters. SVUM International trade show (India), Agri Expo Thailand (Thailand), and Vietnam expo ( Vietnam) are some trade fairs with many famous long grain rice exporters. However, due to the Covid-19, many trade fairs were canceled, hence traders can consider joining online trade fairs.
From trade fairs
- Through Brokers: Foreign traders can consult local brokers to find prestigious long grain rice exporters. Nevertheless, traders have to pay brokers to find reliable and appropriate exporters to trade with.
Through brokers
Steps to work with long grain rice exporters
Trading long grain rice is a rigorous procedure that requires the commitment from either the exporters and importers.Here is a useful guide to traders to work with long grain rice exporters.
- Understand the laws of your importing location: Traders should fully understand the law and requirements of the importing location to protect their rights and also prevent deceptive long grain rice exporters.
- Find a suitable market: Traders should thoroughly consider choosing a market to consume the rice products before trading with long grain rice exporters. This is because no trader wants to import rice into a country where no one buys that product.
- Establish a storage system: Having a storage system helps traders to conserve the rice imported from long grain rice exporters at the best quality. Hence, traders should take into account factors such as temperature, moisture content, container atmosphere, and storage container to form a good storage system.
- Search for reliable long grain rice exporters: Traders should thoroughly consider all the factors to find trustworthy exporters to work with.
- Check the quality of rice from long grain rice exporters: Traders can check the quality by asking for the samples and also the certification of the products from long grain rice exporters
- Establish a safe payment system: Trading long grain rice is a business that can cost thousands of dollars so traders must establish a safe payment system to prevent scammers.
- Compare the price of different long grain rice exporters and negotiate prices: The prices of long grain rice vary from exporters to exporters, hence, consulting prices from different long grain rice exporters is indispensable. After choosing an appropriate exporter, traders should negotiate to purchase the products at the most affordable prices.
- Sign the contracts with long grain rice exporters: Traders must be aware of any terms mentioned in the contracts before signing the contracts. In addition, the payment between traders and long grain rice exporters must be divided into at least two times: one before delivering and one after receiving.
- Receive the products and give feedback to the long grain rice exporters: After receiving the product from the exporters, traders should carefully check the quality and quantity of the products. In addition, to have further purchases, traders should give feedback to the long grain rice exporters.
In conclusion, when it comes to long grain rice exporters, to gain profits, traders should carefully consider many aspects to purchase with the most suitable ones.
Steps to work with long grain rice exporters
Having over 25 years working in the agricultural market , K-Agriculture Factory has developed from a small business to become one of the most famous long grain rice exporters in Vietnam. Possessing an advanced milling and polishing chain with a capacity of 15000 tons/month, accompanied by a 21500-ton storage capacity, K-Agriculture Factory has exported their long grain rice products to over 80 countries around the world. Nowadays, the factory supplies many varieties of long grain rice from Vietnam: ST line, OM 5451, IR 504, Vietnamese jasmine rice.
To purchase long grain rice with K-Agriculture Factory, contact us via:
Email: info@k-agriculture.com
Website: https://k-agriculture.com/
WhatsApp: +84855555694
