Vietnam’s Rice Export Prices Surge Amid Limited Supply
Published on: October 19, 2023.
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Rice Prices in Vietnam on the Rise as Harvest Season Ends
Vietnam’s rice prices are soaring as the harvest season draws to a close, resulting in a shortage of supply. This increase in prices is impacting both domestic and international markets.
The price of Vietnam’s 5% broken rice has reached $623 per ton, which is 7% higher than Thailand’s prices and 10.7% higher than those of Pakistan.
Additionally, the cost of domestic paddy has skyrocketed to unprecedented levels. Japanese paddy J02 is now priced at up to VND14,000 ($0.57), while Khang Dan has reached VND9,000. These prices have never been recorded before.
Farmers have reported that traders are purchasing large orders due to the decline in supply as the season comes to an end. This high demand has led to the surge in paddy prices.
Huynh Thi Bich Huyen, CEO of rice trading company Ngoc Quang Phat, has acknowledged the shortage in supply, stating that she can only buy several hundred tons of paddy each day, which is a third of what she could purchase last month.
Rice exports from Vietnam have seen a significant increase of 40.4% year-on-year, reaching $3.66 billion in the first nine months of this year. Experts forecast that by the end of the year, rice exports may reach a new peak of $4 billion.
Furthermore, the average export price of rice in the first nine months was $553 per ton, marking a 14% year-on-year increase. This rise in prices has resulted in farmers doubling their profits compared to the previous year.
The Vietnam Food Association predicts that rice prices will remain high in the coming months due to low global supply. Several countries, including Indonesia, China, the Philippines, Turkey, and Chile, have increased their rice imports in response to the shortage.
Importance of Rice in Vietnam
Rice is a staple in the Vietnamese diet and a significant part of the country’s economy. Vietnam is one of the largest rice exporters globally, providing high-quality rice to various countries.
As the leading rice suppliers in the region, Vietnam’s rice business plays a crucial role in meeting global demand. The surge in prices may impact both consumers and businesses that rely on rice exports.
To learn more about rice exporters and suppliers in Vietnam, visit hasrice.com. For information on rice exporters from Pakistan, visit pakistanrice.com.
Source: vnexpress.net
