China has agreed to purchase 20,000 tons of organic rice a year from Laos, Lao Prime Minister Thongloun Sisoulith told local authorities in the southern Champassak province. Laos will need to deliver 20,000 tons of genuine organic rice to China and the shipment must not contain non-organic rice, Thongloun was quoted by the state-run Vientiane Times on Sunday [15 January 2017]…Full Article: Jan 2017

Key Points

  • In 2017, Laos will rice export 20,000 MTs of rice to mainland China from Savannakhet Province and from Khong District [bordering Thailand & Cambodia], Champasak Province.
  • In 2016, Savannakhet Province’s IDP Rice Mill was the only Laotian mill that was allowed to export rice to China.

ChinaAg Comments

  • In December 2016, Laos announced that rice exports to China would increase in 2017, the majority of which would originate from Savannakhet Province via the 2+3 Investment Promotion Scheme.
  • 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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