The "hot" increase in rice prices makes it difficult for production facilities and export businesses.

The rapid increase in rice prices in recent times has directly affected the consumption, production, and business activities of people and businesses in Ha Tinh province.

Rice prices are increasing daily.

According to the Vietnam Food Association, in early August, the export price of 5% broken rice from Vietnam exceeded $600 per ton, the highest price in over 10 years. In Ha Tinh, according to some major rice dealers and retailers, the price of rice is currently "pegged" at a high level, following the upward trend of the domestic and international markets.

Accordingly, rice prices have increased by an average of 1,000-3,000 VND/kg compared to a month ago. Some local rice varieties such as Thien Uu 8 and Thai Xuyen 111 have seen increases of approximately 1,000-1,200 VND/kg. High-quality rice varieties from the South, such as ST25, Soc Trang fragrant rice, Tam Thai, and Lai Huong, have increased by 2,000-3,000 VND/kg, ranging from 13,500-21,500 VND/kg depending on the variety.

Rice prices have risen; retail rice prices in Ha Tinh have increased by an average of 1,000-3,000 VND/kg compared to a month ago.

Ms. Nguyen Thi Tam, owner of Tam Cuong rice agency (Ha Tinh City), said: “I’ve never seen rice prices increase so dramatically. Prices have been continuously rising for the past two weeks, sometimes changing hourly. Although market prices are increasing, agencies like ours also have to adjust prices, but if prices keep rising continuously, customers will react immediately.”

Not only has the price of rice increased, but the price of paddy rice is also "heating up" following news from the country's rice export activities, even though this is not yet the time for concentrated, large-scale paddy rice purchasing in the area. Ms. Nguyen Thi Hanh - Director of Hanh Cuong Agricultural Products Processing and Trading Cooperative shared: "This time, we only purchase about 5-7 tons of paddy rice per day from various places because the summer-autumn harvest season has not yet begun. However, according to the nationwide market, paddy rice prices in the area have also increased rapidly in the past few weeks. Accordingly, the price of Khang Dan 18 and Xuan Mai paddy rice fluctuates between 9,000 and 9,500 VND/kg; glutinous rice is from 8,000 to 8,500 VND/kg, an increase of 600 to 1,000 VND/kg compared to last month."

The Hanh Cuong Agricultural Products Processing and Trading Cooperative (Thach Binh, Ha Tinh City) has to accept purchasing rice at high prices to fulfill orders from its partners.

According to traders, the reason for the high price of rice is due to many intermediaries and businesses hoarding goods for export. Currently, markets in China, the Philippines, and Indonesia are increasing imports of Vietnamese rice due to concerns about a potential shortage of this key commodity after India ordered a temporary suspension of rice exports on July 20th, the United Arab Emirates (UAE) imposed a four-month rice export ban (July-November) from July 28th, and Russia announced a temporary suspension of rice exports until the end of 2023 from July 29th…

Rising rice prices directly impact people's consumption.

People and businesses alike are worried.

The rice market in Ha Tinh is small-scale, primarily serving the consumption needs and ensuring food security for the people. However, in recent days, information about the continuous increase in domestic rice prices has caused many consumers to worry. Mr. Phan Xuan Manh (Bac Ha ward, Ha Tinh city) said: "Rice is an indispensable food item, so the price increase will affect the spending of each family. I don't know how long the price will continue to rise, so instead of buying 10 kg as usual, this time I'm taking the opportunity to stock up 30 kg at home."

The rice and paddy storage facilities of purchasing centers and businesses in Ha Tinh are generally small in scale, making them quite vulnerable to price fluctuations.

For Ms. Tran Thi Van, owner of a noodle and pho production facility in Viet Tien commune (Thach Ha district), rising rice prices are a constant worry at this time. Ms. Van shared: “The price of raw rice is continuously increasing. Mid-month, I only imported rice at 13,000-13,500 VND/kg, but now the import price has increased by another 2,000 VND/kg, and it is expected to increase further in the coming period. Even so, we cannot immediately raise the price of noodles and pho because we still need to retain customers. However, given the forecast of further rice price increases, I will have to consider adjusting the selling price of my products because production at the current rate is very difficult.”

Meanwhile, rice purchasing and exporting businesses in the province are also worried about the recent sharp increase in rice prices, which directly affects their production and business activities. Mr. Nguyen Khanh Tung, Director of KC Ha Tinh Co., Ltd., said: “Currently, the company mainly exports rice to countries in Southeast Asia and Africa. The purchase price of rice has increased significantly while we still have to adhere to the prices of previously signed contracts. Therefore, the company is highly likely to incur losses to have enough goods to export. As for new contracts, we have to consider the domestic and international markets, especially waiting for India to lift its rice export ban.”

KC Ha Tinh Co., Ltd. currently mainly exports rice to Southeast Asian and African markets.

According to Mr. Vo Ta Nghia, Deputy Director of the Department of Industry and Trade of Ha Tinh province, following Directive No. 24/CT-TTg dated August 5, 2023, of the Prime Minister on ensuring national food security and promoting sustainable rice production and export in the current period, the Provincial People's Committee has directed relevant departments and agencies to proactively review the situation of rice production and export in the province; the supply and demand of the product; and develop plans for rice supply to ensure market supply from now until the end of 2023 and the Lunar New Year period of Giap Thin 2024, ensuring the supply of paddy and rice and stabilizing the market. At the same time, they are monitoring market developments and preventing violations related to price listing, speculation, hoarding, and unreasonable pricing of rice.

Thai Oanh

Source: https://baohatinh.vn/thuong-mai-dich-vu/gia-gao-tang-nong-lam-kho-co-so-san-xuat-doanh-nghiep-xuat-khau/252680.htm