Coronavirus: Vietnam export ban putting strain on SunRice supply

A ban of exports from Vietnam has put pressure on SunRice, who have had to put a top on their supply until the end of May.

VIETNAM’S ban on rice exports has added pressure to Australia’s supply shortage woes.

According to SunRice, Vietnam’s ban, put in place to secure domestic food supply during the coronavirus pandemic, will cause supply from the company’s Lap Vo rice processing mill to come to a halt until at least the end of May.

“The SunRice Group intends to flex its international supply capability to meet demand in key markets that would have been supplied from its Lap Vo processing mill in Vietnam,” SunRice chief executive Rob Gordon said.

He said Australia was not able to meet its rice commitments due to drought and water supply issues crippling production, along with extra demand from consumers during the coronavirus pandemic.

“The group is observing increased instability and risk.”

Mr Gordon said ­SunRice had to look overseas to source more product.

Meanwhile, the company had begun talks with the Federal Government for an allocation of water to growers ahead of the planting window later this year to ensure continued domestic supply of Australian-grown rice.