Iraq's rice imports from Vietnam surge 132-fold as Thai supply falters

Iraq emerges as a fast-growing outlet for Vietnamese rice

Iraq has sharply increased its rice imports from Vietnam, with purchases rising 132.4 times compared with the same period a year earlier, according to the latest bulletin from the Vietnam Food Association (VFA), reported by danviet.vn. The jump places Iraq among the 15 largest markets for Vietnamese rice.

According to Vietnamese exporters cited in the report, Iraq has traditionally been a market for Thai rice. Recent military conflict has affected Thailand's rice exports into the region, opening space for Vietnamese suppliers. Traders say gaining a foothold in Iraq carries significant weight for expanding Vietnam's rice export footprint and lifting the sector's standing across the Middle East.

Vietnam's overall exports slip in value

Vietnam shipped 401,718 tonnes of rice between 1 and 15 June 2026, worth $196.345 million, the VFA data show. Cumulative exports to 15 June reached 4.670 million tonnes valued at $2.203 billion, down 1.68% in volume and 10.39% in value against the same period in 2025. The average export price stood at $471.7 per tonne.

Asia remained the core of Vietnam's rice trade in the first half of 2026. The Philippines stayed the largest single market with a 45% share, while China bought more than 1 million tonnes — its highest level in several years and up 87% year-on-year. China is a regular buyer of Vietnamese fragrant rice, particularly ST25, along with glutinous rice, and tends to raise purchases of certain grades when world prices are low.

Prices ease as Philippine demand pauses

Export prices fell in the week of 16–22 June 2026 after the Philippines, Vietnam's largest rice buyer, temporarily halted imports in June, trimming market demand. Vietnamese 5% broken rice slipped to $405–415 per tonne from $415–420 the previous week. Traders expect the Philippines to resume buying from July, though volumes may stay limited.

The trends diverged across Asia. Indian rice prices edged up on a stronger rupee, while Thai prices rose on tighter supply and weather concerns. Vietnam faced pressure from softer demand, whereas India and Thailand drew support from price-lifting factors. In the Philippines, domestic rice prices remained high, prompting government intervention, while West African markets were broadly stable.

Global supply stays ample for 2026/27

The US Department of Agriculture's June 2026 outlook points to a relatively well-supplied global rice market in 2026/27, even as output eases slightly from an earlier record. World supply is forecast at 734 million tonnes, comprising output of 537.8 million tonnes and large opening stocks. Global consumption is projected at 541.2 million tonnes, with ending stocks still high at 192.8 million tonnes, concentrated mainly in India and China.

• World rice trade is forecast at a record 63.1 million tonnes, reflecting steady import demand.
• India continues to dominate, accounting for about 28% of output and nearly 40% of global rice exports.
• El Niño remains a risk, with forecasts of strengthening in late 2026 and early 2027 raising concern over weaker monsoon rainfall in India and lower yields for staples such as rice and maize.