Vietnam’s rice rates suffer from high shipping costs as Indian variant remains stable
Published on: June 14, 2024.
Filed under:
The rising cost of shipping is impacting rice exports from Vietnam, leading to a slight dip in prices this week. Traders reported that Vietnam’s 5% broken rice prices were offered at $570-$575 per metric ton, down from $575-$580 the previous week.
Traders based in Ho Chi Minh City mentioned that the increasing shipping costs, both domestically and internationally, are affecting rice shipments. However, no further details were provided on this matter.
Another trader in the city highlighted that the Philippines’ decision to lower its import tariff on rice will likely boost the shipments of Vietnamese rice. historically, the Philippines has been Vietnam’s largest rice export market.
According to the government’s customs data, Vietnam’s rice exports in May dropped by 14.6% from April, amounting to 856,000 tons. However, the country’s rice exports for the first five months of this year showed a growth of 11.2% compared to the previous year, reaching 4.02 million tons.
India, one of the top rice exporters, maintains stable prices for its 5% broken parboiled variety, quoting it at $539-$546 per ton.
A Mumbai-based trader mentioned that African buyers are consistently making purchases, and the depreciation of the rupee allows exporters to absorb rising local prices due to falling supplies.
Thailand’s 5% broken rice remains unchanged at $630 per ton.
There is continued demand from regular customers in Indonesia and the Philippines, with a Bangkok-based trader highlighting that new demand and additional crops can be expected in July.
The government of Bangladesh plans to import 400,000 tons of rice in 2024 to address the struggle in controlling staple grain prices in the country, as stated by food secretary Ismail Hossain.
Source: Business Standard
