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Rice market flourishes

11/05/2020

A report of the Agricultural Products Processing and Market Development Department (Ministry of Agriculture and Rural Development) shows that in the first quarter of 2020, Vietnam exported about 1.67 million tons of rice (increased by nearly 20%), valued at USD 774 million (increased by 27.8%) over the same period in 2019.

According to Mr. Phan Xuan Que, Chairman of the Board of Directors of Vietnam Northern Food Corporation, market movements as well as export results in the first months of the year have shown that the market signal is positive for fulfilling the export targets with 6.7 million tons, worth over USD 3 billion.

Rice prices on the world market are extremely vibrant, at one point it soared to a 7-year high.

Export rice prices of India in mid-April 2020 increased to an eight-month high. Specifically, 5% broken rice of India reached USD 375-380/ton, the highest level since the first week of August 2019, significantly higher than USD 361-365/ton listed in March.

By the first half of April this year, price of standard 5% broken rice of Thailand soared to the highest level since April 2013. However, near the end of April, rice price of this country cooled down to USD 530-538/ton.

According to the latest forecast of the US Department of Agriculture, world rice output in 2020 is estimated at 496 million tons, down 0.6% compared to 2019. World rice consumption in 2020 will reach 490 million tons, an increase of about 0.9% compared to 2019.

The Vietnam Food Association also informed that, in response to the impact of the COVID-19 pandemic, Indonesia plans to procure about 950,000 tons of rice from the population in order to maintain inventories at 1-1.5 million tons. Meanwhile, China is trying to increase domestic agricultural production by encouraging the return of two rice crops a year.

For the export market share of Vietnamese rice, in the first three months, the Philippines ranked first in the rice import market of Vietnam with 36.7% market share, worth USD 257.2 million (up 19.1% over the same period). Other markets where Vietnam's rice export value also increased sharply were China (4.37 times), Taiwan (2.79 times) and Indonesia (up 92%). Notably, the average export price of rice in the first three months of 2020 reached nearly USD 462/ton, up 6.3% over the same period in 2019.

As of April 2020, our country's rice export volume is estimated at 400,000 tons, valued at USD 185 million, bringing the total export value in the first four months of 2020 to USD 886 million, decreased by 0.5% compared to the same period in 2019.

 

Kylie Nguyen

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