Prices of Vietnamese rice exports at world high
Vietnamese rice prices are surging, now surpassing those of Thailand and Pakistan. Driven by increased demand from key markets like the Philippines and Indonesia, Vietnam’s 5% broken rice costs $575 per tonne, significantly higher than its competitors. With exports rising 25% year-on-year, Vietnam is on track to export 8 million tonnes, potentially earning over $5 billion in 2024.
The prices of Vietnamese rice are rising, contrasting with the trends in Thailand and Pakistan, according to the Vietnam Food Association (VFA).
The price of 5 % broken rice from Vietnam, at US$575 per tonne, is US$14 per tonne higher than that of the same type from Thailand and US$34 per tonne higher than that of the same product from Pakistan.
Vietnamese 25 % broken rice exports reached the price of US$539 per tonne, surpassing the same type of rice from Thailand and Pakistan by US$27 per tonne and US$22 per tonne respectively.
Compared to other top rice-exporting countries, Vietnamese rice currently has the highest export prices.
This marks an impressive comeback for Vietnamese rice, as export prices were lower than those of Thailand, Pakistan, and Myanmar just a month ago.
The unexpected increase in rice imports from traditional partners has driven up market demand. This surge has contributed to the continuous rise in Vietnamese rice prices, pushing them back to the highest level globally.
Director of Viet Hung Co. Ltd. in Tien Giang, Nguyen Van Don, said that in the past half month, his company has continuously exported shipments to the Philippines, with volumes increasing by over 30 % compared to July.
According to him the last months of the year are typically when countries ramp up their rice imports. This year, the two largest import markets for Vietnamese rice, the Philippines and Indonesia, have announced increases in their rice import volumes.
The Philippines has increased its rice import target from 4.2 million to 4.5-4.7 million tonnes. Meanwhile, Indonesia may import up to 4.3 million tonnes of rice, instead of the 3.6 million tonnes initially announced at the beginning of the year. This change is due to a 9.5 % decrease in the country’s rice production from the start of the year to August, compared to the same period last year.
General Director of Phuong Dong Food Co. Ltd. Nguyen Viet Anh said that the demand for rice in the market has remained consistently high and price fluctuations are largely driven by seasonal factors.
At this time, with limited supply and countries accelerating imports to prepare for next year’s drought season, rice prices have been pushed higher.
He predicted that Viet Nam’s rice exports are likely to remain stable, with prices continuing to rise until the end of the year if India has not lifted its rice export ban to stabilise domestic food security.
Chairman of the Vietnam Food Association, Nguyen Ngoc Nam, said that the demand from traditional Vietnamese rice importers, including the Philippines, Indonesia, Ghana, Malaysia, Singapore and others continues to be high.
Additionally, Vietnamese rice exporters are expanding into new markets, including the Middle East, Africa, South America, Japan and South Korea.
Statistics from the association show that over the past seven months, Vietnam has exported over 5.1 million tonnes of rice, with a turnover of US$3.2 billion, an increase of 25 % in volume and 5.8 % in value year-on-year.
Vietnam’s average rice export prices are currently very high. At certain times, the export price of Vietnamese rice to Brunei reached US$959 per tonne, to the US US$868 per tonne, to the Netherlands US$857 per tonne, to Ukraine US$847 per tonne, to Iraq US$836 per tonne and to Turkey US$831 per tonne.
With the increase in imports from partners, Nam said that rice exports could reach around eight million tonnes this year, earning more than $5 billion – a new record for the industry.
Source Link : https://www.nationthailand.com/blogs/news/general/40040785
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