The price of Vietnamese rice exports reversed and dropped sharply by 15 USD

According to the Vietnam Commodity Exchange (MXV), at the end of the trading week September 4 - September 9, the November raw rice futures price listed on the Chicago Stock Exchange recorded a sharp decrease of 3.02% to 316, 22 USD/ton.

Data from the Vietnam Food Association (VFA) shows that in just two days, September 6 and September 7, export rice prices continuously decreased sharply. Accordingly, Vietnam's 5% broken rice has decreased by 15 USD per ton compared to September 5 to 628 USD; 25% broken rice also decreased by 15 USD to 613 USD per ton. This price has remained stable in the past few days. Thus, our country's rice export price recorded the strongest decrease for two consecutive days since India banned rice exports.

Vietnam's rice exports reach a record in the first 8 months of 2023

On the world market, Thailand's 5% rice also decreased by 15 USD to 618 USD per ton, and 25% broken rice decreased by 12 USD to 563 USD per ton compared to September 5. After two days of downward adjustment, Vietnamese rice prices continue to remain at the highest level in the world.

Sharing the same trend, domestic rice prices also cooled down significantly. During the week from August 31 to September 7, the price of grade 1 white milled rice decreased by 350 VND/kg to the highest of 14,700 VND/kg. 25% broken rice decreased by 567 VND/kg to the highest of 14,100 VND/kg. Meanwhile, 5% broken rice had the highest price of 14,500 VND/kg, down 550 VND/kg.

For exports, according to the latest statistics from the General Department of Customs, in 8 months, rice exports reached nearly 6 million tons, the highest level ever, up 20% over the same period and completing 89% of the year's plan. . This export level brings rice export turnover in 8 months to nearly 3.2 billion USD, an increase of more than 34% in value thanks to high rice prices.

Among import markets, the Philippines, China, Indonesia and Ghana imported the most Vietnamese rice with a growth rate of 3% to nearly 1,500% over the same period last year.

Explaining the reason for the deep price drop, MXV said that the Philippines - Vietnam's largest rice consumer - officially imposed a price ceiling on imported rice, which has put great pressure on our country's export rice prices. According to data from Vietnam Customs, in the first 8 months of this year, the country exported 2.34 million tons of rice to the Philippines, accounting for more than 40% of Vietnam's total rice exports.

Recently, the Philippine Ministry of Finance continued to recommend measures to curb rising retail prices of rice, including tax cuts on imported rice. Specifically, the rice import tax rate is proposed to be reduced from 35% to about 0 - 10%. The country's presidential office said rice prices will stabilize when farmers start harvesting the main crop this September and October. About 5 million tons of rice will be harvested, allowing the Philippines to reach its target of 20 million tons this year, citing Department of Agriculture data.

The decline in rice prices will soon be contained

However, according to MXV, the decline in rice prices will likely be contained soon, and the possibility that rice prices can reverse and increase again is not unlikely. In China, recently, a flood damaged corn and rice fields in the key production area in the north of the country, raising concerns about food inflation as the world is facing a crisis. supply is tight.

According to the Food and Agriculture Organization of the United Nations (FAO), the world food price index in August fell to its lowest level in 2 years. In contrast, the rice index increased nearly 10% compared to July because India's decision to ban Indica white rice exports in July disrupted trade at a time of scarce supply before the new crop harvest.

With such a trend, in the last 4 months of this year, Vietnam's rice exports are forecast to still be boosted by the number of good orders from many new markets. However, export businesses are concerned that the supply is not enough to meet the demand.

In a recent report sent to the Prime Minister, the Vietnam Food Association (VFA) noted that rice prices increased too quickly, leading to a broken supply chain from farmers to traders, processing mills and businesses. rice export industry. This makes it difficult for export businesses to mobilize sources of goods to carry out signed contracts.

With the world rice production and trade market forecast to contain many fluctuations in the coming time, VFA proposes to supplement specific regulations on a reporting mechanism and assign a management agency to monitor the signing situation. Conclusion and implementation of contracts to export rice and rice goods in stock of traders who are eligible for rice export business according to Decree 107.

At the same time, VFA proposed adding a mechanism to regulate the floor price of rice exports to ensure efficiency for rice farmers, while ensuring healthy competition between rice exporters, especially between traders. invested in production facilities according to Decree 109 and traders rented warehouses according to Decree 107.

On the part of the Ministry of Industry and Trade , to continue implementing the assigned tasks in Official Telegram No. 610/CD-TTg and Directive No. 24/CT-TTg of the Prime Minister on firmly ensuring food security. national food and promoting sustainable rice production and export in the current period, the Minister of Industry and Trade issued Directive No. 07/CT-BCT dated August 15, 2023 on strengthening market information work. market, trade promotion, development of rice export markets and stabilization of the domestic market in the current period. The Directive assigned tasks to functional units under the Ministry of Industry and Trade, local Departments of Industry and Trade, Vietnam Food Association and traders to focus on implementing groups of solutions on institutional improvement; information search and market development.

Recently, market management forces have stepped up inspection and control to minimize the increase in rice prices due to speculation and hoarding.