Rice prices 'heat up' again due to many rumors from India

According to the latest update of the Vietnam Food Association (VFA), the export price of 5% broken rice from Vietnam has increased by 10 USD, to 663 USD/ton. Also increasing by 10 USD is Pakistani rice, to 578 USD/ton.

The world rice market is "hot" again.

Thai rice prices continued to increase by $7 to $585 per ton. Compared to the beginning of this month, the price of Thai rice has increased by about $20. Thai rice prices have increased continuously because the government has just approved a plan to support capital and interest rates for farmers, cooperatives and businesses to temporarily store rice instead of selling it immediately after harvest.

Thus, Vietnam's rice price continues to be the highest in the world and maintains a gap of about 80 USD with its rival Thailand.

The global rice market has been "warmed up" for two main reasons. First, Thailand has issued a policy to support temporary storage of rice for at least 5 months with an estimated output of over 3 million tons. This has contributed to limiting supply, promoting the psychology of delay of sellers while buyers will want to trade more actively.

Second is the speculation that India will extend its rice export restrictions until the end of 2024. Recently released figures show that India is being negatively impacted by the El Nino phenomenon, which is affecting productivity and output, especially in early 2024.

However, many major Indian newspapers reported that after 5 months of export restrictions, the country's rice inventory has reached about 17-19 million tons, up to 10 million tons higher than at the beginning of 2023. The increase in rice inventory is also creating a lot of pressure, especially on storage costs. Businesses and organizations related to the rice industry also called on the government to have a suitable solution to this problem.

In the first 10 months of 2023, Vietnam exported more than 7.1 million tons of rice, equivalent to nearly 4 billion USD, up 17% in volume and 35% in value over the same period in 2022. Meanwhile, its rival Thailand exported about 6.8 million tons of rice. It is estimated that in the whole year of 2023, Vietnam will export about 8 million tons while Thailand has a target of 8.5 million tons./.

According to Thanh Nien

Source: https://thanhnien.vn/gia-gao-lai-nong-vi-xuat-hien-nhieu-don-doan-tu-an-do-185231122124654266.htm

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