Worries of Rice Exporters as Prices Surge
Published on: November 5, 2023.
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Vietnam Rice Exporters Worry About Surging Prices
Vietnam rice exporters are growing concerned as prices continue to surge, fearing that customers may turn to cheaper options offered by competitors. The price of Vietnam’s 5% broken rice has reached $653 per ton, which is more than 16% higher than that of its biggest competitors, Thailand and Pakistan.
Deputy Chairman of the Vietnam Food Association, Do Ha Nam, expressed concern that buyers may seek out suppliers from Thailand for a better price. This has led Vietnamese exporters to lose bids for rice supply to Indonesia, as the maritime neighbor has already started purchasing from more affordable sources.
To secure their supplies, larger exporters are hoarding rice, which has put smaller companies in a difficult position. These smaller companies must either pay higher prices to farmers or cancel orders with foreign buyers. Some exporters have even had to cancel previously signed contracts due to fears of being unable to fulfill them.
Nguyen Viet Anh, CEO of Phuong Dong Foods, highlighted that the unprecedented rice prices in Vietnam pose a significant risk to companies that do not want to maintain large inventories. This is because there is a concern that India might lift its ban on rice exports, causing prices in Vietnam to plummet. India imposed a ban on certain rice varieties in July and is expected to keep it in place until early next year.
Despite these challenges, Vietnam has still managed to export 7.1 million tons of rice worth $4 billion in the first 10 months of this year. This represents a 17% increase in volume and a 35% increase in value. Analyst Pham Quang Dieu from market research firm AgroMonitor predicts that the country could export up to 8 million tons of rice by the end of the year.
Source: [e.vnexpress.net](https://e.vnexpress.net)
