Two weeks after India banned rice exports, Vietnam’s rice export prices continued to increase and are about to exceed 600 USD/ton.
Workers at My Thoi Port, Long Xuyen City, An Giang put rice onto export ships – Photo: BUU DAU
According to the Vietnam Food Association on August 2, in the world rice market, Vietnam’s rice export prices continued to increase after India banned rice exports from July 20.
Specifically, on August 2, the price of Vietnam’s 5% broken rice traded at 593 USD/ton, an increase of 5 USD/ton compared to August 1. Currently, the price of Thai rice of the same type is at 625 USD tons.
For 25% broken rice, Vietnam sold at 573 USD/ton, up 5 USD/ton compared to the previous day and 7 USD/ton higher than Thai rice of the same type.
Jasmine fragrant rice alone increased to 733 USD/ton, an increase of 45 USD/ton compared to August 1 and an increase of 110 USD/ton compared to July 20.
Thus, after two weeks since India banned rice exports, Vietnam’s 5% broken and 25% broken rice prices increased by 60 USD/ton, while Thailand’s increased by 81 USD/ton and 63 USD/ton, respectively.
Rising rice prices push rice prices in the Mekong Delta up. Specifically, the price of OM 5451 rice increased to 6,800 – 7,000 VND/kg, OM 18 rice increased to 6,900 – 7,100 VND/kg, and Dai Thom 8 rice price increased to 6,900 – 7,100 VND/kg.
In response to this development, on July 31, the Ministry of Agriculture and Rural Development also proposed that the Prime Minister issue a directive on increasing rice exports in the new situation.
At the regular agricultural industry press conference on August 1, Mr. Nguyen Nhu Cuong, Director of the Department of Crop Production, said that the increase in world rice prices in recent days is an opportunity for Vietnam to boost exports. rice, if you don’t take advantage of it, you will miss this opportunity.
According to Mr. Cuong, this year’s plan is for the whole country to cultivate 7.1 million hectares, with an expected output of over 43 million tons of rice. This goal is completely achievable as according to current calculations, rice output can reach over 43 million tons, with even higher scenarios.
To take advantage and seize the opportunity to export rice, the Department of Crop Production has arranged to increase the rice growing area in the fall-winter crop in the Mekong Delta to 700,000 hectares, while the plan from the beginning of the year was about 650,000 hectares.
Mr. Cuong also emphasized that in 2022, Vietnam will have a rice output of over 42 million tons and export 7.13 million tons of rice.
This year, it is expected to produce over 43 million tons of rice, so of course it is possible to export rice beyond the record of 2022.
Regarding ensuring domestic food security, Mr. Cuong said that when balancing the consumption needs of 100 million people, for processing, and for breeding, they all increase to a very high rate. For example, every year Vietnamese people eat about 7.5kg of rice/month, then increase to 9kg/month.
“Rice exports may increase but domestic rice supply will not be affected, however there are psychological problems, moreover this is a market mechanism issue so prices may increase to a certain extent” – Mr. Cuong speak.
By the end of July, rice exports reached 2.58 billion USD, up 30% over the same period in 2022, the average rice price was 534 USD/ton, up 9.2% over the same period.
It is expected that the whole year of 2023 will export over 7.5 million tons of rice and earn 4.1 billion USD.
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