After "evaporating" 50 USD within 1 week, will world rice prices decrease further?

World rice prices "evaporated" sharply

Data from Oryza, according to statistics from the Vietnam Food Association (VFA), rice prices of major suppliers in Asia have fluctuated strongly this week. Accordingly, Pakistan is the country with the strongest adjustment, reducing from 25-50 USD/ton. Among them, 5% rice decreased the most by 50 USD, down to 548 USD/ton; 25% broken rice decreased by 40 USD/ton, to 488 USD/ton and 100% broken rice decreased by 25 USD/ton, currently priced at 468 USD/ton. In addition, this price also decreased sharply by about 70 USD/ton compared to the peak at the end of August 2023.

World rice prices decreased but Vietnamese rice remained stable

Similarly, the world's second largest supply source, Thailand, also had a reduced offering price of 6-8 USD/ton this week. After adjustment, the price of 5% broken rice in this country is at 583 USD/ton and 25% broken rice is at 535 USD/ton. Compared to the end of August (August 31), Thailand's rice price has also "evaporated" by about 50 USD/ton.

While supplies have been adjusted to decrease sharply, Vietnam's rice prices of the same type still remain high. Specifically, 5% broken rice is priced at 613 USD/ton while 25% broken rice remains at 5 USD/ton.

Regarding the reason for the sharp decrease in rice prices in other countries, talking to a reporter from Industry and Trade Newspaper, Mr. Nguyen Van Thanh - Director of Phuoc Thanh IV Company - said that the decrease in countries' adjustment is due to the fall harvest season. planning while they have large inventory, thereby reducing prices sharply to compete.

Also according to Mr. Thanh, this decrease may also be due to countries being afraid that India may reopen rice export activities after October 15 because any of the country's policies at the present time will have an impact. strong impact on the world rice market.

Vietnamese rice maintains its price, especially in the high quality segment

For Vietnamese rice, the price is relatively stable because the supply is not much, at the same time the domestic price is also quite high and businesses do not have many orders left so they keep the price.

“Traders currently mainly trade and sell rice in high segments such as Dai Thom 8, OM 18, Jasmine... with prices ranging from 690-700 USD/ton. This price, compared to the peak in August, has decreased by USD/ton but is still 50 USD/ton higher than last year" - Mr. Thanh shared.

According to rice export traders, the 5% and 25% broken rice segments include long-grain white rice and IR 504 rice, but both types of rice are not grown as much as before. In addition, in recent years, farmer households in the Mekong Delta have followed the policy of reducing the area of growing low-grade rice to growing high-value rice, targeting demanding markets. such as Japan, Korea, EU...

"Focusing on high quality rice will help stabilize output, prices will not be much affected by the market, thereby bringing better income to both rice growers and businesses" - Mr. Nguyen Van Thanh said.

It is known that since the time of rice price fever until now, in addition to previously signed contracts with low prices, many businesses share that, in the high segment going to the Japanese and EU markets... has remained stable, with no fluctuates a lot. For example, Trung An High-Tech Agriculture Joint Stock Company plans to deliver about 20,000 tons of quality rice in October and November 2023 at prices ranging from 674 USD/ton to 700 USD/ton, depending on type.

Or Co May Co., Ltd. is also exporting high quality rice to many demanding markets such as the EU, US... with stable prices, not strongly affected by the market. Even, according to Mr. Dinh Minh Tam, Director of this company, in these markets the demand is quite large, but because Co May's supply is "limited", the company has not expanded to new customers but mainly still does Eat with traditional partners.

In fact, reducing the proportion of regular rice to high-quality rice by farmers and businesses is on track according to Decision No. 583/QD-TTg dated May 26, 2023 of the Government approving the Strategy. Developing Vietnam's rice export market until 2030 (Strategy). The strategy clearly states that in the period 2023 - 2025, the proportion of low- and medium-grade white rice will account for no more than 15%; High quality white rice accounts for about 20%; Fragrant rice, japonica rice, and specialty rice account for about 40%; Sticky rice accounts for about 20%; Rice products with high added value such as nutritious rice, parboiled rice, organic rice, rice flour, products processed from rice, rice bran and some other by-products from rice account for about 5%. Strive for the proportion of branded rice exports to be over 20%.