Laos plans to step up rice exports to China next year after the quality of rice sold to the country so far was found to be satisfactory by Chinese buyers, the state-run press Vientiane Times reported. Laos began selling rice to China in 2015. It is expected that export figure of about 4,200 tons of sticky rice and purple rice in 2016 will rise to over 8,000 tons in 2017, as demand from Chinese markets increases, according to the Lao Department of Agriculture…Full Article: Dec 2016

Key Point

  • The majority of Laotian rice exports to China will originate from Savannakhet Province via the 2+3 Investment Promotion Scheme.

ChinaAg Comments

  • In June 2016, Laos’ Golden Mountain Garden Group (based in Xiangkhouang Province) signed a rice export agreement with a Chinese buyer. The agreement was made during the 2016 China-South Asia Exposition was held in Kunming, Yunnan Province, from June 12 to 17, 2016. Xiangkhouang Province, northern Laos, produces approximately 40,000 MTs of ‘khao kai noi’ rice per year, with 80% (~32,000 MTs) consumed provincially and the remaining 20% exported (~8,000 MTs).
  • In December 2015, Laos exported its first rice shipment to China from Savannakhet Province, southern Laos.
  • In October 2015, China’s Administration of Quality Supervision, Inspection and Quarantine (AQSIQ) granted its approval to Xuanye (Lao) to export Laotian rice.
  • In March 2015, China’s National Development and Reform Commission (NDRC) granted permission to Hunan’s Xuanye (Lao) to export Laotian rice to China (quota of 8,000 MTs). The company was the first and only enterprise granted permission to export Laotian rice to China.
  • In 2013, Laos produced approximately 3.4 million MTs of paddy rice (e.g. unhusked).
  • Founded in 2013 and headquartered in Changsha, Hunan Province, Hunan Xuanye Ecological Agriculture Development Co., Ltd. is an investment company that focuses on grain (e.g. rice) production and marketing. Its subsidiaries include Hunan Xuanye Trading Co., Ltd., Xuanye (Lao) Sole Co. Ltd. and the Laos Rice Research Center. The company operates 20,000 ha in Laos’s top grain producing region of Savannakhet Province. The company also produces Laotian honey and mushrooms.
  • In 2012 and 2013, China purchased more than 1.6 million MTs of rice per year from Vietnam and roughly 500,000 MTs per year from Pakistan. The vast majority of these imports (80% by volume) were funneled in via the southern Chinese ports of Shenzhen, Huangpu, and Hong Kong.

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