Businesses state the reason why rice export price "evaporated" by 35 USD/ton

After many adjustments, the export price of 5% broken rice from Vietnam is now approaching the 600 USD/ton mark, 35 USD/ton lower than the peak on August 31.

Specifically, according to the Vietnam Food Association (VFA), in the trading session on September 25, the price of 5% broken rice in Vietnam decreased by 5 USD/ton to 608-612 USD/ton, the price of 25% broken rice also decreased by a similar amount, to 593-597 USD/ton.

While export rice prices have fallen, domestic rice prices remain high.

Thus, compared to the set price of 643 USD/ton on August 31, Vietnam's rice export price has "evaporated" 35 USD/ton. Similarly, 25% broken rice, after reaching a peak of 628 USD/ton on August 28, has now also decreased 35 USD/ton, down to 593 USD/ton.

Not only Vietnamese rice, other rice supplies from Thailand and Pakistan also decreased, in which 5% broken rice from Thailand fell to 600 USD/ton while the same type of rice from Pakistan was at 598 USD/ton.

In fact, the decrease in export rice prices has been predicted by many businesses in advance and this price reduction is to help businesses sell more conveniently. “The current decrease is not beyond our prediction because anything that increases to its peak will also decrease again. This is inevitable. However, the current price is very good for export companies,” said Mr. Le Nguyen Huu Dung, Director of Nhat Thanh Rice Development and Trading Company Limited.

According to Mr. Phan Van Co, Marketing Director of Vrice Company Limited, the price reduction at this time by many businesses is to help Vietnamese rice become more competitive and attract buyers at the end of the year.

Mr. Co also predicted that rice prices may continue to fall below 600 USD/ton. “ I think rice prices may continue to fall further. However, prices will not fall too much because the current rice output from world suppliers is not much,” Mr. Co predicted.

Sharing the same view, Mr. Dinh Minh Tam, Director of Co May Company Limited, said that in October 2023 - when India's crop is harvested and the Indian Government sells goods to import new crops, the world rice price may continue to decrease. If the Indian Government continues to maintain the current ban, the rice price will still be maintained.

Although the export price of rice has been continuously decreasing in recent times, the domestic price of raw rice and finished rice products is still on the rise. Specifically, the price of raw rice IR 504 is currently fluctuating around 11,900-12,000 VND/kg; finished rice IR 504 is at 13,900-14,000 VND/kg. In addition to rice, the price of by-products is also high, in which IR 504 broken rice fluctuates from 11,900-12,000 VND/kg; the price of dry bran fluctuates around 6,550 - 6,700 VND/kg.

At the current price, businesses say that the price of rice in the domestic market is still very different from that of exported rice. According to businesses, the increase in rice prices will benefit farmers, but the increase must be acceptable. Because if the price of rice continues to trend “domestic prices are higher than foreign prices”, exporting businesses will not be able to access domestic rice sources.

According to the Vietnam Food Association, rice exports are favorable, especially in the last months of the year because major markets such as China, the Philippines, Malaysia, etc. are still buying strongly. In addition, consumers in demanding markets such as Europe, South Korea, Australia and some newly opened markets in the Middle East are favoring high-quality rice from Vietnam, creating opportunities to increase rice exports.

Preliminary statistics from the General Department of Customs show that in the first 15 days of September, Vietnam exported about 308 thousand tons of rice of all kinds, earning 190.4 million USD. Accumulated to mid-September this year, the amount of exported rice reached 6.12 million tons, worth 3.35 billion USD.

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