Currently, the export prices of Vietnam’s rice are in the lowest price range in recent six months. Although it has significantly cooled down compared to the record in February 2024 at 673 USD/ton, Vietnam’s rice export price is nearly 120 USD/ton higher than in the same period last year.
According to the General Department of Customs, in March 2024, Vietnam’s rice exports reached 1.12 million tons, worth 709.6 million USD. This was an increase of 99.7% in volume and 90% in turnover compared to February 2024.
Accumulated in the first quarter of 2024, rice exports reached over 2.18 million tons, and turnover was nearly 1.43 billion USD. The result was an increase of 17.6% in volume and 45.5% in turnover compared to the first quarter of 2023.
Rice exports continue to maintain high growth.
RICE EXPORTS ARE EXPECTED TO SET A NEW RECORD
The Philippines was the largest export market of Vietnam’s rice in the first 03 months of 2024 with over 1.01 million tons, equivalent to nearly 649 million USD. This market accounted for 46.4% of the total volume and 45.5% of the total rice export turnover of the country. The export price to the Philippines was 641.7 USD/ton, an increase of 27.3% compared to three months of 2023.
Rice exports to Indonesia ranked second, which were up 199.7% in volume and 308.8% in turnover with 445,326 tons, equivalent to 285.06 million USD. Export price reached 640 USD/ton.
Next, rice exports to the Malaysian market increased by 28.8% in volume and 60.6% in turnover, reaching 98,917 tons, equivalent to 61.55 million USD, with an average price of 622.3 USD/ton.
According to the Vietnam Food Association, the export price of rice in March 2024 and in the first half of April 2024 have decreased compared to the price of rice exported in the first two months of the year.
The Vietnam Food Association said that the price of Vietnam’s rice cooled down in accordance with the natural cycle. All producing countries entered the main harvest so the import demand was no longer as high as in the previous time. In particular, Vietnam was in the winter-spring harvest. Rice supply to the market was abundant, as a result, it would bring down domestic prices and exports.
Rice exports are expected to set a new record.
Commenting on the rice market in the second quarter, the Vietnam Food Association said that the world price and Vietnam’s rice price will remain high. The world’s rice supply is declining due to adverse weather, and many major suppliers are forced to ban and restrict exports.
The El Nino phenomenon, which dried large parts of Asia in 2023, is forecast to continue in the first half of 2024. Analysts now believe that Asia’s rice production in the first half of this year will continue to decline due to dry weather. This further increases the demand for imports to ensure food security in many markets.
Meanwhile, India, the world’s largest rice exporter, has not removed its ban on white rice exports since the middle of last year. Thailand, the second-largest rice exporter, also said it would reduce rice exports for food security in the country.
On the other hand, political conflicts in the Middle East are disrupting global supply chains, with logistics costs and transportation time significantly increased.
The US Department of Agriculture (USDA) forecasts global rice consumption in the 2023-2024 season at a record 522.9 million tons, up 2.7 million tons compared to the previous year and 7.5 million tons higher than the total harvest./.