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Rice export prices increase to multi-year high

09/06/2020

Rice export price in May reached an average of USD 527/ ton, up 5.6% compared to April and up 21.4% over the same period in 2019.

The Ministry of Industry and Trade confirmed that rice exports increased sharply after the Government allowed normal rice export to resume from May 1.

Data from the Agricultural Products Processing and Market Development Department (Ministry of Agriculture and Rural Development) shows that the total volume and value of rice exports in the first 5 months of the year reached nearly 2.9 million tons and USD 1.41 billion, an increase of 5.1% in volume and an increase of 18.9% in value over the same period in 2019.

Notably, the rice export price in the recent period has increased by 13% over the same period in 2019, reaching an average of USD 485/ton. On average in May, the price of rice rose to the highest level in many years, reaching USD 527/ton, an increase of 5.6% compared to April and an increase of 21.4% over the same period in 2019.

Meanwhile, during the period April 23-May 24 only, export prices of Indian rice increased steadily due to strong demand from Africa and Asia, but this price is still 30% cheaper than Thai rice of the same type and 15% cheaper than Vietnamese rice.

According to the Ministry of Industry and Trade, with competitive prices and strong export turnover, Vietnam has a great opportunity to surpass Thailand in global rice exports this year.

In the first four months, the Philippines ranked first in the rice export markets of Vietnam with 40.5% market share, reaching 902,100 tons and a total value of USD 401.3 million, an increase of 11.4% in volume and an increase of 26% in value over the same period in 2019.

In addition, exports to other markets also increased sharply, typically China and Indonesia (2.7 times), Taiwan (an increase of 67.9%) and Ghana (an increase of 39.3%).

Currently, the Philippines is seeking to import another 300,000 tonnes of rice to boost state stockpiles while battling the Covid-19 pandemic and ahead of its own lean season in the third quarter. Therefore, the Agricultural Products Processing and Market Development Department recommends enterprises to pay attention to the fierce competition from Thai rice exporters.

In the domestic market, prices of paddy and rice in the Mekong Delta have been stable to slightly increase over the past month.

In Kien Giang, IR50404 rice increased by VND 200/kg to VND 5,800-5,900/kg, OM 6976 rice increased by VND 200/kg to VND 6,500-6,800/kg. In Vinh Long, wet long grain rice increased by VND 200/kg to VND 5,900/kg, dry rice increased by VND 400/kg to VND 6,200/kg.

 

Kylie Nguyen

© 2019 Vietnam Bank for Agriculture and Rural Development No. 2 Lang Ha street, Ba Dinh district, Hanoi, Vietnam
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