Rice prices in the Mekong Delta had increased slightly after thegovernment approved the purchase of one million tonnes for a nationaltemporary reserve last weekend.
Early last week, the pricefor winter-spring rice remained high, but then it suddenly fell, partlydue to competitive pressure from Thai rice.
Farmers like Le Van Tam were surprised by the sudden plunge in price.
Tam had planted 8,000sq.m of rice this year, yielding nearly eighttonnes. He was paid 4,700-4,800 VND per kg on March 9 but due to a lateharvest of five days, the price fell to 4,200 VND per kg.
Tam said he then began to store rice at home, waiting for a higher price.
Traders also stopped doing business as prices declined sharply. Manyof them were even willing to lose deposits that farmers had put downfor advance purchases.
"Rice-export companies buy ricethrough traders. I had deposited money to buy 50ha in Thoi Lai districtin the Mekong Delta city of Can Tho at a price of 4,600 VND. But theprice fell, and I felt somewhat lost," trader Nguyen Van Tuong said.
"This is the first time ever that the price for winter-spring ricehas unexpectedly dropped to such as low level," said Duong Quoc Nieu, awarehouse owner at the 21st rice port in An Nong commune, Tinh Biendistrict.
According to figures from the Vietnam FoodAssociation (VFA), in mid-February, Thailand sold 600,000 tonnes of riceand another 800,000 tonnes in March.
The Thai Governmentalso plans to sell 1 million tonnes per month and Thai farmers another 5million tonnes by the end of March.
"Thailand's rice export price is expected to fall, and this will affect Vietnamese rice exports," said a VFA representative.
Meanwhile, demand from international rice importers has not been high as they are waiting for the expected lower prices.
However, after the Vietnamese government decided to buy one milliontonnes of rice last weekend, farmers and traders resumed business asprices inched up.
Since early this year, the five biggestrice exporters in the world, including Thailand, India, Vietnam,Pakistan and the US, have sold only 4.1 million tonnes, a fall of 7.2percent compared to the same period last year.
According tothe Ministry of Agriculture and Rural Development, this year'swinter-spring rice crop will have a high yield and there will be greatpressure to export.
Mekong Delta provinces this year haveharvested 650,000 of a total of 1.6 million ha of rice, with totalexpected capacity of nearly 11 million tonnes, an increase of 34,000tonnes compared to the same period last year.
By the end ofFebruary, VFA's members exported 638,000 tonnes for $275 million, a dropof 13.5 per cent in quantity and 16 per cent in value compared to 2013.-VNA
Early last week, the pricefor winter-spring rice remained high, but then it suddenly fell, partlydue to competitive pressure from Thai rice.
Farmers like Le Van Tam were surprised by the sudden plunge in price.
Tam had planted 8,000sq.m of rice this year, yielding nearly eighttonnes. He was paid 4,700-4,800 VND per kg on March 9 but due to a lateharvest of five days, the price fell to 4,200 VND per kg.
Tam said he then began to store rice at home, waiting for a higher price.
Traders also stopped doing business as prices declined sharply. Manyof them were even willing to lose deposits that farmers had put downfor advance purchases.
"Rice-export companies buy ricethrough traders. I had deposited money to buy 50ha in Thoi Lai districtin the Mekong Delta city of Can Tho at a price of 4,600 VND. But theprice fell, and I felt somewhat lost," trader Nguyen Van Tuong said.
"This is the first time ever that the price for winter-spring ricehas unexpectedly dropped to such as low level," said Duong Quoc Nieu, awarehouse owner at the 21st rice port in An Nong commune, Tinh Biendistrict.
According to figures from the Vietnam FoodAssociation (VFA), in mid-February, Thailand sold 600,000 tonnes of riceand another 800,000 tonnes in March.
The Thai Governmentalso plans to sell 1 million tonnes per month and Thai farmers another 5million tonnes by the end of March.
"Thailand's rice export price is expected to fall, and this will affect Vietnamese rice exports," said a VFA representative.
Meanwhile, demand from international rice importers has not been high as they are waiting for the expected lower prices.
However, after the Vietnamese government decided to buy one milliontonnes of rice last weekend, farmers and traders resumed business asprices inched up.
Since early this year, the five biggestrice exporters in the world, including Thailand, India, Vietnam,Pakistan and the US, have sold only 4.1 million tonnes, a fall of 7.2percent compared to the same period last year.
According tothe Ministry of Agriculture and Rural Development, this year'swinter-spring rice crop will have a high yield and there will be greatpressure to export.
Mekong Delta provinces this year haveharvested 650,000 of a total of 1.6 million ha of rice, with totalexpected capacity of nearly 11 million tonnes, an increase of 34,000tonnes compared to the same period last year.
By the end ofFebruary, VFA's members exported 638,000 tonnes for $275 million, a dropof 13.5 per cent in quantity and 16 per cent in value compared to 2013.-VNA
