At the end of the trading session on November 1, the export price of Vietnam’s 5% broken rice reached 653 USD/ton which was the highest in 15 years and 93 USD more expensive than Thai rice.
The above information has just been updated by the Vietnam Food Association (VFA). According to VFA, the price of Vietnam’s 5% broken rice is higher than the peak of the price fever in August this year and far ahead of competitors such as Thailand and Pakistan $93 and $90 per ton, respectively.
Vietnam’s 25% broken rice is also trading at $638 a tonne, higher than Thailand’s and Pakistan’s $118 and $150 a tonne, respectively.
Rice export prices hit a 15-year peak.
In addition to exports, domestic rice prices continue to rise to record highs. In the North, rice prices increased sharply. Specifically, Dai Thom from large domestic companies cost 21,000 VND/kg which is up 1,000 VND (5%) over the previous month and 3,000 VND (16%) over the same period last year.
Rice from Loc Troi Group together with ST21 and 24 from small and medium enterprises also increased by 500 VND per kg compared to a month ago. The price of Thom Lai Long An is 21,000 VND/kg and Go Cong 22,000 VND/kg, simultaneously increasing by 1,500 VND.
According to businesses, the reason for the strong increase in Vietnam’s rice is due to the increasing quality and large demand from the world market.
Earlier, the Indian government said it would remove the export ban in October. But so far there has been no new announcement, even though the ban may last until the end of February 2024. So the world is still 40% short of supply from this country.
In addition, Indonesia, China, and the Philippines have a high demand for rice stocks. According to export data from businesses, Indonesia agreed to buy Vietnam’s rice at over 650 USD/ton.
Mr. Do Ha Nam, Vice Chairman of the VFA, said that rice prices in the community are at record highs, pushing domestic rice prices higher than export prices. This is the reason why Vietnam’s rice export prices have turned the tables. The low supply and escalating prices made many Vietnamese enterprises not dare to sign new export contracts.
A rice shop in Go Vap district, HCM city.
The newly announced data from Customs shows that in 10 months of the year, Vietnam exported more than 7.1 million tons of rice. This result was up 17% in volume and 35% in value compared to the same period in 2022, exceeding the plan set at the beginning of the year (6.5 million tons).
In October alone, rice exports reached 700,000 tons, equivalent to 433 million USD, up 27% in value over the same period last year. With a remarkable increase in export volume, by the end of this year, rice exports are expected to reach 7.8 million tons – a record high so far.
According to businesses, rice export prices of Vietnam and the Asian region will continue to increase in the coming time amid the stressful situation of rice supply in the world has not shown any positive signs.
The report of the Ministry of Agriculture and Rural Development said that rice production this year will reach 43-43.4 million tons, an increase of about 650,000-7,000 tons compared to 2022. In addition to export supplies, Vietnam has to ensure domestic food security.
By October 25, the Fall-Winter crop has about 400,000 ha not yet harvested, equivalent to nearly 2.2 million tons of rice to be harvested from now until the end of December. For the Winter-Spring crop 2023-2024, it is expected to plant nearly 3 million ha which is down 10,000 ha compared to the previous crop. However, production is expected to increase more than the same period in 2022, reaching over 20 million tons. The reason is that growers have increasingly high-care techniques and they choose rice varieties with good yields and suitable for the climate./.