Weevils hamper India-Vietnam grain trade

India exports maize and soybean cake to Vietnam and Vietnam re-exports part of the products back to India, causing a ‘trade conflict’ between the two countries. Cause: weevils. Reuters reported that Indian enterprises have stopped exporting maize and soybean cakes to Vietnam after Vietnam decided to re-export nearly 50,000 tons of materials for making animal feed it imported from India before in early February 2010.

Halting exportation of animal feed to Vietnam has been described as retaliation by India, but the Vietnam Feed Association said that it was just “news circulated for intimidation”. The information immediately worried Vietnamese feed producers, because India is now providing 30 percent of the total feed materials needed for Vietnam. In 2010, Vietnam imported a little over 800,000 tons of oil-cakes, worth almost US$400 million and 400-500,000 tons of maize worth around US$108 million. Read more ...

This blog is written by Martin Little The Global Miller, published and supported by the GFMT Magazine from Perendale Publishers.