According to the Vietnam Food Association, last week, rice export prices of Vietnam and other countries in the world recorded a slight decline. Therefore, domestic rice prices also decreased slightly due to the slow trading market.
By September 14, the export price of Vietnam’s 5% broken rice reached 613 USD/ton, Thailand’s 611 USD/ton, and Pakistan’s 608 USD/ton. Compared to the end of August 2023, this export price has decreased by about 22 – 30 USD/ton.
The rice export market is unstable.
RICE PRICES TEND TO INCREASE AGAIN
Although in recent days, rice export prices in the world have decreased slightly, in the context of restricting rice exports of some countries, the world rice market will fluctuate in the direction of increasing again.
Specifically, on August 25, India imposed an export tax of 20% on parboiled rice. This type of rice is partially cooked while in the husk. Exporters who had licenses before the regulation was issued will make transactions as usual. The export tax on parboiled rice will be applied until October 15, 2023.
On August 27, India’s Ministry of Commerce said it would impose a floor price of 1,200 USD/ton when exporting basmati rice (a popular type of rice in South Asia). This is to prevent the smuggling of non-basmati rice, which is banned from export – with the document listed as basmati rice.
Meanwhile, according to the August 2023 Rice Outlook Report of the US Department of Agriculture (USDA), world rice production in 2023/24 is forecast at a record high of 520.9 million tons, up 173,000 tons compared to the forecast in the previous month.
World consumption and inventories for the 2023/24 season are forecast at 523.0 million tons, down nearly one million tons from the forecast in the previous month, but up 1.5 million tons compared to the same period last year.
Global rice trade in 2024 is forecast at 52.9 million tons, down 3.44 million tons from last month’s forecast. Rice trade in 2023 is forecast to decrease by 2 million tons compared to the forecast in July 2023.
The reason is that in recent years, the export price of rice in the world has increased sharply, even up to nearly 650 USD/ton. This partly affected trade activities since enterprises were hesitant to purchase and import partners also restricted the immediate implementation of new contracts./.