Concerns Arise Among Rice Exporters Over Increasing Prices
Published on: November 5, 2023.
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Surging Vietnam Rice Prices Raise Concerns for Exporters
Vietnam rice exporters are becoming increasingly worried as prices continue to rise, fearing that their customers may opt for cheaper alternatives offered by competitors. The price of Vietnam’s 5% broken rice has reached $653 per ton, which is over 16% higher than prices from its two main competitors, Thailand and Pakistan.
Do Ha Nam, deputy chairman of the Vietnam Food Association, expressed concerns that buyers may start looking for other suppliers, such as those from Thailand, in search of more affordable prices. As a result, Vietnamese exporters have been unable to secure bids to provide rice to Indonesia, as the nation has already turned to cheaper suppliers.
In an effort to secure their supplies, larger exporters are now stockpiling rice, leaving smaller companies with no choice but to either pay farmers more for rice or cancel orders with foreign buyers. Some exporters have already been forced to cancel previously signed contracts due to fear of being unable to meet the demand.
Nguyen Viet Anh, CEO of Phuong Dong Foods, warns that the unprecedented rice prices in Vietnam pose a high risk to companies that do not wish to maintain large inventories. This is due to concerns that India may lift its ban on rice exports, which would cause Vietnam’s prices to plummet. India implemented the ban on certain rice varieties in July, and it is expected to keep it in place until early next year.
Despite the challenges, Vietnam has managed to export 7.1 million tons of rice worth $4 billion in the first 10 months of this year, marking a 17% increase in volume and a 35% increase in value. Analysts from market research firm AgroMonitor predict that the country could export up to 8 million tons of rice by the end of the year.
Source: [https://e.vnexpress.net](https://e.vnexpress.net)
