The export price of Vietnam’s 5% broken rice over the weekend was recorded at 638 USD/ton and 25% broken rice at 623 USD/ton. These prices continue to be higher than the prices of Thailand’s export rice.

Vietnam’s rice export prices continued to set a new record over the weekend after the Asian rice market made new developments.

According to the Vietnam Food Association, trading on August 25, Vietnam’s rice export prices maintained the highest position in the world.

The price of 5% broken rice exported by Vietnam on August 25 was $638/ton, up $105/ton compared to July 19 (the time before India banned exports). Thai rice of the same type was traded at $628/ton, up $87/ton.

Vietnam’s 25% broken rice price increased from $513/ton on July 19 to $623/ton over the weekend, and Thai 25% broken rice from $502/ton increased to $565/ton.

There was an increase in rice export prices over the weekend because, on August 25, India announced that it had imposed a 20% tax on rice exports, and would last until October 16. The move could further reduce exports from the world’s largest exporter and boost global rice prices, which have traded at the highest level in the past 12 years.

The decision was announced by the Indian Ministry of Finance on the evening of August 25 to control rising prices, while ensuring sufficient supply for the domestic market.

With this new measure, India has now imposed export restrictions on all non-basmati rice, which accounts for 25% of the country’s total rice exports.

On July 20, India surprised importers by imposing a ban on the export of non-basmati white rice, which is widely consumed. The ban drove rice prices to record highs.

The UN Food and Agriculture Organization’s rice price index in July 2023 rose to its highest level in nearly 12 years as prices in major exporting countries increased sharply due to strong demand after India imposed export restrictions.

The Ministry of Agriculture and Rural Development said that when India and some countries banned rice exports, countries such as China, the Philippines, and Indonesia all increased their purchases of Vietnamese rice. 

At the 25th session of the Standing Committee of the National Assembly, answering questions about issues in the agriculture sector, Minister of Agriculture and Rural Development Le Minh Hoan said that: Some countries banned rice exports which gave Vietnam an opportunity. However, we need to be very calm because all things have two sides. If not well managed, it will incomprehensive.

“In the current context, it is necessary to ensure national food security and promote rice exports as committed by Vietnam and responsible to the world in ensuring food security,” Minister Le Minh Hoan said.

In the first 07 months of 2023, the rice industry exported 4.83 million tons, worth 2.58 billion USD, up 18.7% in quantity and 29.6% in value over the same period in 2022. The average export price is estimated at 534 USD/ton, up 9.2% over the same period in 2022.

It is expected that Vietnam will export 7.5 – 8 million tons of rice of all kinds in 2023./.