Kerala, Indonesia and Vietnam Take Steps to Strengthen Rice Markets
Kerala is preparing to release another 25,000 tonnes of rice if retail prices rise during the Onam season, as the state faces a reduction in its central rice allocation. The additional supply is aimed at keeping prices under control when festival demand typically increases.
Before Onam, the state government had already arranged around 1.66 lakh tonnes of rice and 24,506 tonnes of wheat for distribution through the public distribution system. Supplies under the Open Market Sale Scheme have also been increased, with around 2,000 tonnes released by August 16. Demand for subsidised market-sale rice is expected to remain particularly strong in northern parts of Kerala.
The state says ration-card holders will not face any reduction in their existing entitlement or an increase in prices. Since the beginning of 2026, Kerala’s monthly central rice allocation has fallen by about 6,459 tonnes, prompting the state to step up market intervention ahead of the festival.
Meanwhile, Indonesia is preparing to expand its premium rice exports, with Malaysia, Singapore and the United Arab Emirates among the targeted markets. State-run logistics agency Perum Bulog has close to 200,000 tonnes of premium rice available for overseas sales.
Indonesia has been looking beyond its traditional domestic market as it seeks to build a stronger presence in international rice trade. Malaysia, the Philippines, Papua New Guinea and Saudi Arabia are among the markets being explored. Earlier this year, Indonesia shipped its first 2,280-tonne consignment of premium rice to Saudi Arabia.
In Vietnam, the focus is on protecting farmers from weak prices. The Vietnam Food Association is encouraging exporters, traders and other businesses to purchase more paddy directly from farmers, particularly during the harvest period.
The initiative is intended to provide better price support as growers deal with rising cultivation costs. Businesses have also been encouraged to focus on higher-quality varieties such as DT8 and OM18, improve storage capacity and secure longer-term overseas contracts.
Stronger coordination between farmers, traders and exporters could help Vietnam maintain farm incomes, steady domestic prices and reinforce its position in the global rice market.