Rice export price highest in 10 years

The world's rice supply has decreased, and El Nino has caused many countries to compete to import Vietnamese rice, pushing prices to a 10-year high.

Latest figures from Customs show that in the first half of the year, rice exports reached more than 4.2 million tons, worth 2.26 billion USD, up over 21% in volume and 32% in value over the same period last year.

According to calculations, in June, the average export price of rice reached 650 USD per ton, up 9.4% compared to May and up 20.8% compared to the same period last year. In the first 6 months, the export price of rice is estimated at 539 USD per ton, up more than 10% compared to the same period in 2022 - the highest level in the past 10 years.

People harvesting rice in Son Tay ( Hanoi ). Photo: Ngoc Thanh

According to the Vietnamese Ministry of Agriculture and Rural Development , the reason for the sharp increase in rice prices is that the world's rice supply has decreased compared to the same period in 2022. The appearance of El Nino has forced many countries to increase purchases for storage.

In the Philippines, the Ministry of Agriculture predicts the return of El Nino, which could severely impact domestic food production. The Indonesian government predicts that El Nino could cause drought in the country, which could result in a sharp decline in agricultural harvests in July and August. The country plans to import 2 million tons of rice this year despite the continued rise in rice prices.

Statistics show that in the first 5 months of the year, the main markets, the Philippines and China, both grew strongly at double-digit rates. In addition, rice exports to some new markets such as Indonesia, Chile, Türkiye, Senegal... recorded a sudden increase of 1,100-16,000% compared to the same period last year.

A few days ago, Bloomberg quoted a source close to the matter as saying that the Indian government is discussing a plan to ban all non-Basmati rice exports, citing rising domestic prices and an attempt to curb inflation. Retail rice prices in Delhi have risen 15% this year, while the national average has risen 8%, according to data from the Indian Food Ministry.

Faced with the above information, businesses and the Vietnam Food Association said that if this ban is passed, global rice prices will increase. In the near future, Vietnamese rice will not only benefit in price but also be favorable in export.

A Can Tho-based company said that export orders are abundant and the price of fragrant rice is increasing the most. They are always in a state of not having enough supply to pay for orders. It is forecasted that the rice export market will reach high value in the second half of the year.

To ensure domestic and export demand, the Ministry of Agriculture and Rural Development previously directed key rice production areas, especially the Mekong Delta, to proactively cultivate, prioritizing high-quality short-term rice varieties and fragrant rice varieties that meet market demand.

Currently, Vietnamese rice has been exported to 156 countries and territories, the market structure is increasingly diverse, the types of exported rice have shifted positively towards increasing quality, high added value, and penetrating many high-end rice markets.

Thi Ha

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