rice export prices decrease, no longer highest in the world
Published on: June 1, 2024.
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Vietnamese Rice Prices Drop, Ranking Sixth in Global Market
Vietnamese rice prices, once the highest in the global market, have now fallen to sixth place. According to the Vietnam Food Association, the country’s 5% broken rice was priced at $574 per ton on May 30, lower than that of the U.S., Thailand, Pakistan, Myanmar, and India. This decrease marks a 13.5% drop from the historic peak in December. Currently, Vietnam’s rice prices are 7.4% lower than its competitor, Thailand.
The decline in prices can be attributed to the high supply of rice in Vietnam, leading to a surplus and subsequently lower prices. The deputy CEO of exporter Co May, Dinh Ngoc Tam, mentioned that his company still has large inventories, which has resulted in selling at lower prices. Similarly, Nguyen Viet Anh, the CEO of rice exporter Orico, explained that the abundance of supply in Vietnam has led to the decrease in prices after a prolonged period of high prices.
It is worth noting that rice prices are also declining in various other countries, and if India resumes rice exports, prices could experience further reduction. Additionally, the U.S. has projected a rise in global rice supply.
In response to the dropping prices, the Ministry of Industry and Trade has instructed the Vietnam Food Association to investigate exports to Indonesia, expressing concerns that excessively low prices may violate competition laws. Vietnam’s Loc Troi Group recently secured a bid to supply rice to Indonesia’s state-owned Perum Bulog at a price of $563.
Despite the decrease in prices, Vietnam’s rice exports have seen growth in the first five months of 2024. Year-on-year, rice exports have increased by 34.8%, reaching $2.3 billion. While Vietnam may have lowered ranks in terms of rice prices, its export market remains strong.
