Vietnamese rice prices go against the world trend

The high price of rice among the people has pushed Vietnam's export price to 623 USD per ton, 7-10% higher than that of Thai and Pakistani goods.

Data from the Vietnam Food Association shows that at the end of the session on October 16, the price of 5% broken rice and 25% broken rice from Thailand was only at 533-581 USD, down 5% compared to the previous month. Similarly, the same type of rice from Pakistan was 18 USD per ton lower than Thai goods.

While the rice prices of the two exporting countries have decreased, Vietnamese rice prices have risen to 623 USD per ton (5% broken rice) and 608 USD (25% broken rice). Vietnamese 5% broken rice is currently priced 42 USD (7%) higher than Thai rice and 60 USD (10.7%) higher than Pakistani rice.

Along with export prices, domestic rice prices continue to climb. In the North, rice prices have increased to an unprecedented high. Currently, the Japanese J02 rice variety is priced at VND8,500-9,000 per kilogram of fresh rice, equivalent to VND13,000-14,000 per kilogram of dry rice. As for low-quality Khang Dan rice, which was previously only around VND7,000 per kilogram, has now increased to VND9,000.

In the South, the price of paddy at the field increased by nearly 400 VND per kilogram to 8,200 VND compared to September. Grade 1 white rice increased to 14,800 VND, an increase of 450 VND compared to the previous month.

Rice shop on Le Duc Tho street, Go Vap district. Photo: Thi Ha — Rice shop on Le Duc Tho street, Go Vap district (HCMC). Photo: *Thi Ha*

According to farmers, the harvest season is now over, so most of the rice has been sold. They are starting to plant seeds for the new crop. Normally, the price of rice at the end of the season is low, but this year it has increased due to traders buying a lot.

Ms. Huynh Thi Bich Huyen, Director of Ngoc Quang Phat Import-Export Joint Stock Company - a rice purchasing unit in the Western region, said that rice prices are rising and people are running out of rice.

"I am buying at 8,200-8,500 VND per kilogram of rice, but I can only buy a few hundred tons per day, 2-3 times less than the previous month. This is also the reason for the high price of rice," said Ms. Huyen.

Sharing the same view, the director of a rice exporting enterprise in Dong Thap said that the rice purchase contracts from importers have increased but the domestic rice supply is not much because it is the end of the season. Therefore, the price of Vietnamese rice has increased continuously and enterprises do not dare to sign new export contracts when the supply is low.

According to the Ministry of Agriculture and Rural Development, by the end of September this year, our country's rice exports are estimated to have earned 3.66 billion USD, up 40.4% over the same period last year. The average rice price reached 553 USD per ton, up 14% over the same period in 2022, at times reaching nearly 650 USD per ton.

By the end of September, the rice harvest reached 33.6 million tons, up 1.4% over the same period last year. This year's rice crop, rice farmers earned double the profit compared to the same period last year. The average rice yield reached 62.6 quintals per hectare, up 1.6 quintals per hectare.

According to the Vietnam Food Association, Vietnam's rice export prices will continue to increase in the last months of the year because the global rice supply is still in short supply. Of which, Indonesia increased its purchases with a large output of up to 1.5 million tons for national reserves, but suppliers such as Thailand, Pakistan, Malaysia and Vietnam still could not meet the demand. On October 9, this country opened a tender for 500,000 tons of rice, but participating units still did not have enough supply for this market. Similarly, China, the Philippines, Türkiye and Chile continued to increase their rice purchases from other markets.

Deputy Minister of Agriculture and Rural Development Phung Duc Tien said that rice exports this year will reach a record and the expected turnover is over 4 billion USD.

Thi Ha

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