Some countries ban rice exports: What does the Ministry of Agriculture and Rural Development say?

Can rest assured about food security, as well as take advantage of the best opportunities for export

This July, the global rice market is "hot" due to information about rice export bans from many countries.

At the regular press conference in July 2023 organized by the Ministry of Agriculture and Rural Development on the afternoon of August 1, in Hanoi, Mr. Nguyen Nhu Cuong - Director of the Department of Crop Production (Ministry of Agriculture and Rural Development) said that Vietnam's rice supply will not be affected, however, there will be psychological problems and prices will increase to a certain extent.

Rice exports in 2023 are expected to reach about 7 - 7.5 million tons.

“We have a rice crop every 3 months, in January 2024 we will have about 1.2 million tons of rice from the Winter-Spring crop. Therefore, we are completely assured about food security, as well as taking advantage of the best opportunities for export,” Mr. Nguyen Nhu Cuong added.

Regarding the issue of current market opportunities, will Vietnam expand its rice growing area? Mr. Nguyen Nhu Cuong said that according to the policy, the rice growing area will only decrease, not increase. However, to seize the opportunity, the Ministry of Agriculture and Rural Development has arranged to increase the rice growing area in the Mekong Delta from 650,000 hectares to 700,000 hectares from the beginning of 2023.

“This is an opportunity for us. If we do not seize the opportunity, we will miss it. Yesterday, the Ministry of Agriculture and Rural Development advised the Prime Minister to issue a Directive to increase rice exports to take advantage of the opportunity in the current context of world rice production,” Mr. Nguyen Nhu Cuong informed.

Last year, Vietnam produced 42.7 million tons of rice and exported 7.1 million tons of rice. This year, with an expected rice output of over 43 million tons, rice exports are expected to surpass last year's record.

Vietnam's rice industry is facing a huge opportunity, however, no matter how good the opportunity is, our most important goal is still to ensure food security. Therefore, depending on the market situation and timing, the Government and ministries will flexibly regulate between domestic consumption - reserves - exports. " We can export more than last year, but how much the increase depends on the specific situation," said Mr. Nguyen Nhu Cuong.

Will export 7 - 7.5 million tons of rice in 2023

In 2023, the rice growing area of ​​our country will be about 7.1 million hectares, the average yield is estimated at 60.7 quintals/ha, the expected output is over 43 million tons of rice, an increase of 0.4 million tons compared to 2022.

"Up to this point, we have inspected the Red River Delta, North Central and Southern regions, showing that rice growth and development are very good. If there are no unusual weather conditions or disease problems, the Summer-Autumn crop will be a record yield crop. And the target of reaching over 43 million tons of rice is completely achievable" - Mr. Nguyen Nhu Cuong informed.

However, there are still 3 months left until harvest, so the Ministry of Agriculture and Rural Development cannot yet clearly grasp how the situation will change. The Department of Crop Production will coordinate with units within the ministry and related units to work with localities in inspecting irrigation reservoirs, ensuring water sources for rice cultivation, coping solutions for this year's production as well as the production plan for the 2023-2024 Winter-Spring crop.

Regarding the issue of how El Nino will affect the rice industry, Mr. Nguyen Nhu Cuong commented that it is expected that El Nino will start to have an impact from around October 2023. Thus, rice production this year will basically be safe. However, the 2023-2024 Winter-Spring crop and 2024 will have impacts from El Nino on production.

Mr. Nguyen Nhu Cuong - Director of Department of Crop Production (Ministry of Agriculture and Rural Development)

Mr. Nguyen Nhu Cuong added that in 2015 - 2016, for the first time we faced El Nino and there were some confusions. In 2019 - 2020, El Nino was assessed to be stronger than in 2015 - 2016, but the total damage was only 60 thousand hectares, of which no area was completely lost (only 30 - 50% damage). The basis of El Nino's impact in 2015 - 2016 will be the foundation for the Department to develop plans and strategies to deal with El Nino.

"Compared to other rice-growing countries in the world, Vietnam is less affected by El Nino," Mr. Nguyen Nhu Cuong shared and explained that the reason is that in addition to having basic solutions in arranging crop structure and arranging suitable seasons for each region and each crop, the solution of irrigation works is one of the advantages.

"We are not subjective, but we can be proactive and respond to minimize the impacts of El Nino on cultivation in general and the rice industry in particular," Mr. Nguyen Nhu Cuong emphasized.

Overview of the press conference

According to the report of the Ministry of Agriculture and Rural Development, localities are currently focusing on speeding up the progress of planting Winter-Spring and Autumn-Winter rice, caring for and harvesting Summer-Autumn rice, and all crops are growing well.

Accumulated to mid-July, the whole country planted 6,175.3 thousand hectares of rice, down 0.8% over the same period last year; harvested 3,677.4 thousand hectares, down 0.8% with an average yield of 65.7 quintals/ha, up 0.8 quintals/ha, harvested output of over 24.1 million tons, up 0.4%.

Mr. Nguyen Van Viet - Director of the Planning Department (Ministry of Agriculture and Rural Development) - commented that with this year's rice crop being relatively favorable, it is expected that Vietnam's rice export this year will reach over 7.1 million tons and ensure food security.

In 2022, rice export volume will reach 7.1 million tons (up 16.3% compared to 2018), export value will reach 3.49 billion USD (up 12.7% compared to 2018). In the first 7 months of 2023, Vietnam exported 4.38 million tons with a value of 2.68 billion USD. It is expected that this year we will produce over 43 million tons of rice, possibly 43.4 million tons or 43.2 million tons, an increase of 1.8 - 2% compared to 2022.

India, Russia, and the United Arab Emirates (UAE) are banning rice exports, which is an opportunity for rice growers, especially in the Mekong Delta. Commenting on the rice export situation in 2023, the Ministry of Agriculture and Rural Development said that with favorable market factors , rice exports in 2023 are expected to reach about 7 - 7.5 million tons.

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