Vietnamese rice prices rise to world’s highest while global market softens, says food association
The increase is supported by a strong demand from key buyers like the Philippines despite a harvest peak, the association said.
Vietnamese rice prices have become the world’s highest in the past few days despite a downward trend in Asian markets, according to the Vietnam Food Association (VFA).
The increase is supported by a strong demand from key buyers like the Philippines despite a harvest peak, the association said.
Specifically, the price of 5 % broken rice from Vietnam rose by US$3 to reach $382 per tonne, the highest globally for the same variety. In contrast, export prices for rice from Thailand, Pakistan and India decreased to $375, $376 and $377 per tonne, respectively.
In the past week, Vietnamese rice export prices rose to a near three-month high at around $395-400 per tonne. India’s prices hovered near their lowest level in two years, remaining steady at around $375-380 per tonne, on surplus supplies overshadowing a slight improvement in overseas demand.
Customs statistics showed that Vietnam’s rice exports in the first half of the year totalled 4.7 million tonnes, worth $2.44 billion, up 3.8 % in volume but down 15.4 % in value. Export prices averaged $518 per tonne during this period, down by 18.4 % compared to the same period last year.
The Philippines is the largest buyer of Vietnamese rice, accounting for 44.6 % of Vietnam’s export volume and 42.6 % of export value over the same six-month period.
Although the Philippines’ plan to increase the current 15 % tariff on imported rice might affect Vietnam’s rice exports, the Philippines is expected to continue to be an important export market for Vietnamese rice in the next few years, according to the Vietnam Trade Office in the Philippines.
The trade office said that it is difficult for the Philippines to increase its domestic rice production capacity to meet domestic demand in a short time.
This year, the Philippines’ rice import demand is forecast to be around 4.92 million tonnes, and could even reach over five million tonnes.
Still, Vietnamese rice exporters should pay attention to maintaining competitiveness in the Philippines, the trade office said.
Nguyen Vinh Trong, director of Viet Hung Food in Dong Thap, said that aside from the Philippines, demand from China and African markets also supports Vietnam’s rice prices.
Viet Nam News
Asia News Network
