Vietnam reaches new peak in export rice price
Published on: November 2, 2023.
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Vietnam’s Rice Export Prices Reach Record Highs
The Vietnam Food Association (VFA) has reported that the prices of Vietnamese export rice have reached their highest level ever. Currently, Vietnam’s 5% broken rice is being traded at $653 per tonne, representing a $10 increase, while the 25% broken rice is being sold at a record high of $638 per tonne. These prices are significantly higher than those of Thailand and Pakistan, with Thailand’s 5% broken rice valued at $560 per tonne and Pakistan’s at $563. Similarly, Thailand’s 25% broken rice is priced at $520 per tonne, while Pakistan’s is at $488.
The VFA has highlighted the strong demand for Vietnamese rice in the global market and believes there is still ample room for Vietnamese rice exports. The Philippines intends to import an additional 1.1 million tonnes of rice, while Indonesia’s demand stands at 2.3 million tonnes. Additionally, China’s rice import is expected to surge by the end of the year.
Vietnamese exporters have stated that the upward trend in rice prices is likely to continue even during the fall-winter and winter-spring harvest seasons. This is due to the increased global demand for rice over the years, coupled with a decrease in supply resulting from climate change. With their high-quality rice that has gained popularity among foreign consumers, Vietnam anticipates selling its rice at $640-650 per tonne by the end of 2023.
However, the rise in domestic rice prices has posed challenges for rice traders who find it difficult to meet the ordered volume. Consequently, many traders have been hesitant to enter into new rice export contracts out of fear of incurring losses.
The General Department of Vietnam Customs has reported that from January to October, Vietnam earned $4 billion from shipping over 7.1 million tonnes of rice abroad. This represents a 35% increase in value and a 17% increase in volume compared to the same period last year. The Ministry of Agriculture and Rural Development has projected that Vietnam will be capable of exporting 7.8 million tonnes of rice and earn $4.2-4.5 billion in export revenue in 2023.
Source: VietnamPlus
