A paddy field in Phu Yen province (Photo: VNA) According to data from the Vietnam Food Association (VFA), exportrice prices of Vietnam are moving sideways after sharp decreases. The price of25% broken rice dropped by 20 USD per tonne in the past week to 584 USD pertonne and 5% broken by 19 USD to 609 USD, slightly lower than Thailand’s.Meanwhile, 100% broken rice is at 508 USD per tonne, 25 USD per tonne higherthan Thailand’s.
Rice prices are dropping on the psychology of waiting for clearermarket trends from rice import plans of importing countries.
In addition, the main Winter-Spring crop, typically with good ricequality and output, is coming in two weeks, which will significantly impact thetrend of rice prices, according to agriculture expert Hoang Trong Thuy.
Enterprises are waiting for the coming harvest season to preparefor their signed contracts and set price frames for their export contracts inthe second half of the year.
Farmers also tend to wait for better points of time to sell theirrice with expectation for higher prices, while the El Nino is increasingworries about global rice support.
The US Department of Agriculture has lowered its forecast forglobal rice supply in 2023-2024 crop by 4.5 million tonnes from the previousforecast of 518 million tonnes. Meanwhile, the demand is estimated at 522million tonnes, meaning a shortage of around 4 million tonnes which will keeprice prices at high levels in 2024.
Thuy also said rice importers know that Vietnam was entering thelargest rice harvest of the year so they were not in a hurry to buy, butwaiting for good prices.
The psychology of waiting would continue for a short time.However, the upward trend of rice prices would continue in 2024 on limitedsupply from India’s rice export restrictions and the impacts of El Nino onfarming.
Go sustainable
"The important thing is how to harmonise benefits amongfarmers, exporters and the nation,” Thuy said, pointing out that the roles ofexporters were critical.
In fact, few enterprises are capable in terms of capital to stockrice. It’s necessary to increase lending and create favourable conditions forenterprises to access credit at reasonable rates for rice purchases, which willhelp them to be more active in ensuring supply sources for exports and inestablishing relationships with farmers, according to Thuy.
Farmers should also be provided with support in terms of paymentsfor fertilisers and pesticides for production in the context of rising inputcosts.
A combination of solutions would help the rice industry to developsustainably, he said.
Nguyen Nhu Cuong, Director of the Department of Crop Productionunder the Ministry of Agriculture and Rural Development, said Vietnam targetedto maintain 7.1 million ha of rice cultivation in 2024 with a total output of43 million tonnes and export at least 8 million tonnes.
According to Seasia Stats, Vietnam is the third largest riceexporter in the world with an export volume of 7.6 million in 2023-2024, comingafter India with an export of 16.5 million tonnes and Thailand with 8.2 milliontonnes.
Latest updates of the General Department of Customs showed that Vietnamhad exported 663,209 tonnes of rice as of February 15 to earn a total of 466.6million USD.
The average rice export price was 703.50 USD per tonne, 33.65%higher than the same period last year.
In 2023, Vietnam earned 4.68 billion USD from exporting 8.1 milliontonnes of rice, representing increases by 35.3% and 14.4% against 2022.
ASEAN is the largest rice export market of Vietnam, accounting for61% of the country’s rice export volume. Vietnam’s rice is also exported to Chinaand Ghana./.
VNA
