Domestic retail rice prices have reversed course and are falling.

Along with the decline in rice export prices, domestic retail rice prices have now reversed course and are falling significantly, mainly in the affordable rice segment.

Retail rice prices have fallen significantly.

Maintaining her usual shopping habits at local markets, Ms. Thu Trang (Hoang Mai district, Hanoi ) visited a rice distributor on Kim Nguu street to buy rice. When paying, she was quite surprised to see that the price of domestic rice had dropped significantly.

“Normally, I only buy rice once a month. During the recent Lunar New Year, an acquaintance gave me some rice as a gift. My rice needs during Tet weren't high because I had to travel between my paternal and maternal hometowns. Today, I was quite surprised to find that the price of rice had dropped significantly; for example, Thai jasmine rice was 20,000 VND cheaper for 10kg,” said Ms. Thu Trang.

Domestic retail rice prices have reversed course and are falling. (Illustrative image)

This morning (February 21st), Ms. Thu Hoai (Dong Da district, Hanoi) also went to buy rice. The product she chose was Dien Bien rice . She said: “Before the Lunar New Year, the price of rice was about 196,000 VND/kg, but now it has dropped to 190,000 VND/kg. I don't use much rice in a month, so the price isn't a major concern for me.”

However, for small eateries or communal kitchens, the decrease in domestic rice prices actually helps them increase their profits. Ms. Hoa, the owner of a small eatery (alley 6, Phuong Mai street, Dong Da district, Hanoi), said that if her shop sells 20-30 kg of rice each day, she will save about 60,000 VND in costs. This means a monthly saving of 1.8-2 million VND in rice expenses.

Price list for rice at a rice distributor on Kim Ngu Street, Hai Ba Trung District, Hanoi.

Reporters from the Industry and Trade Newspaper observed at several local markets and rice distributors in Hanoi that the price of rice is currently being sold by traders at a decrease of 6,000 – 20,000 VND per 10kg compared to the period before the Lunar New Year.

Specifically, currently, Bac Huong rice is being sold at 185,000 VND/10kg; Japanese Jasmine rice at 197,000 VND/10kg; Thai green rice at 175,000 VND/10kg; Thai red rice at 170,000 VND/10kg; Tam Dien Bien and Hai Hau rice are both at 190,000 VND/kg; new Jasmine rice at 170,000 VND/10kg; BC and Khang Dan rice are priced at 145,000 VND/10kg and 140,000 VND/10kg respectively;…

The extent of retail rice price reductions in the domestic market varies depending on the distributor and store. This is because some distributors and stores previously imported rice at high prices, and since they haven't sold all of it yet, they can't immediately reduce prices and require a delay. Furthermore, related costs such as transportation, warehousing, and labor have all increased, making rapid price reductions difficult. Some stores have stated that they will only lower retail prices for consumers once they have sold off their current rice stock and imported new rice at a lower price.

Along with Hanoi, in Ho Chi Minh City, retail rice prices have also started to cool down, with a decrease of about 10,000 – 20,000 VND per 10kg. In some local markets in Ho Chi Minh City, fragrant jasmine rice, fluffy broken rice, and fragrant broken rice are priced at 180,000 VND/10kg; soft-cooked rice at 190,000 VND/10kg; Nang Hoa rice at 220,000 VND/10kg; and Huong Lai rice at 25,000 VND/10kg… Rice suppliers have reduced prices, so retailers are also lowering their prices. Some stores have updated their price lists, but others are keeping the same prices as before Tet and only announcing them when customers make purchases.

They have recently focused on the affordable rice segment.

Notably, in major cities like Hanoi and Ho Chi Minh City, rice prices have mostly decreased in the mid-range segment, while premium and branded rice remain unchanged. Specifically, ST25 premium rice is priced at 410,000 VND/10kg; ST25 shrimp-farmed rice at 430,000 VND/10kg; high-grade rice at 520,000 VND/10kg; and organic ST25 at 800,000 VND/10kg...

The number of customers buying rice at retailers is quite low at the moment.

Limited supply is a factor helping to keep rice prices stable. However, for both premium and mid-range rice segments, the number of customers buying rice at retailers is quite low at this time. This is because it's just after Tet (Lunar New Year), and most households have already stocked up on rice, so customers usually don't buy rice again until after the first lunar month.

While retail rice prices at stores, distributors, and local markets have started to fall, supermarkets have not yet shown any signs of price reduction due to their focus on the mid- and high-end segments, which are less volatile. Furthermore, supply contracts between supermarkets and distributors are often long-term and have time lags, meaning retail prices are less affected immediately when raw rice prices decrease.

As of the morning of February 21st, according to the Vietnam Food Association (VFA), the export price of Vietnamese 5% broken rice remains at US$394/ton; the export price of 25% broken rice is US$369/ton; and the export price of 100% broken rice is US$310/ton. These prices have remained stable for the past four days.

However, compared to the world's leading rice exporting countries, the export prices of 5% broken rice and 25% broken rice from Vietnam are lower than those of Thailand and India, but higher than those of Pakistan. The price gap for exported rice between countries is also gradually narrowing.

According to experts, the persistently low price of Vietnamese rice is also a factor forcing other countries to lower their offers to increase competitiveness. Some opinions suggest that the fact that Vietnam's export rice prices are currently stagnant indicates that prices have truly hit rock bottom and are unlikely to fall further.

Source: https://congthuong.vn/gia-gao-ban-le-trong-nuoc-quay-dau-giam-374951.html