Indonesia will in September review whether this year's domestic rice crop is insufficient, and decide if it needs to import 1 million MT from Vietnam, an official said Monday. Indonesia has had a ban on rice imports since 2004 to fight illegal cross-border trading, which distorts local prices. Imports are permitted if state stockpiles dip below 1 million MT.

Earlier this month, the Indonesian and Vietnamese trade ministers signed a memorandum of understanding for Indonesia to import 1 million MT of rice if necessary. Whether Indonesia needs to do that will become clear in September at the end of the main rice harvest. Thailand has signed a deal to supply Indonesia with 1.5 million MT of rice this year under a government-to-government arrangement.