Vietnamese rice prices rise to world’s highest while global market softens, says food association

Vietnamese rice prices rise to world’s highest while global market softens, says food association

The increase is supported by a strong demand from key buyers like the Philippines despite a harvest peak, the association said.

A rice warehouse in Đồng Tháp Province. Vietnamese rice prices have surged to be the world’s highest in recent days. — VNA/VNS Photo Hữu Trí

Vietnamese rice prices have become the world’s highest in the past few days despite a downward trend in Asian markets, according to the Việt Nam Food Association (VFA).

The increase is supported by a strong demand from key buyers like the Philippines despite a harvest peak, the association said.

Specifically, the price of 5 per cent broken rice from Việt Nam rose by US$3 to reach $382 per tonne, the highest globally for the same variety. In contrast, export prices for rice from Thailand, Pakistan and India decreased to $375, $376 and $377 per tonne, respectively.

In the past week, Vietnamese rice export prices rose to a near three-month high at around $395-400 per tonne. India’s prices hovered near their lowest level in two years, remaining steady at around $375-380 per tonne, on surplus supplies overshadowing a slight improvement in overseas demand.

Customs statistics showed that Việt Nam’s rice exports in the first half of the year totalled 4.7 million tonnes, worth $2.44 billion, up 3.8 per cent in volume but down 15.4 per cent in value. Export prices averaged $518 per tonne during this period, down by 18.4 per cent compared to the same period last year.

The Philippines is the largest buyer of Vietnamese rice, accounting for 44.6 per cent of Việt Nam’s export volume and 42.6 per cent of export value over the same six-month period.

Although the Philippines’ plan to increase the current 15 per cent tariff on imported rice might affect Việt Nam’s rice exports, the Philippines is expected to continue to be an important export market for Vietnamese rice in the next few years, according to the Việt Nam Trade Office in the Philippines.

The trade office said that it is difficult for the Philippines to increase its domestic rice production capacity to meet domestic demand in a short time.

This year, the Philippines’ rice import demand is forecast to be around 4.92 million tonnes, and could even reach over five million tonnes.

Still, Vietnamese rice exporters should pay attention to maintaining competitiveness in the Philippines, the trade office said.

Nguyễn Vĩnh Trong, director of Việt Hưng Food in Đồng Tháp, said that aside from the Philippines, demand from China and African markets also supports Việt Nam’s rice prices. 

Bizhub