The "bright door" for rice export continues to open
According to rice export traders, Indonesia is the second largest rice importer from Vietnam. Currently, this country is experiencing nine consecutive months of rice shortages due to domestic production being lower than demand, pushing the domestic retail price of high-quality rice up to 2 USD/kg, exceeding the ceiling price. The government set it at 9 USD/kg. Therefore, the Indonesian Government allows increased rice imports to "cool down" domestic rice prices.
Mr. Vu Tuan Anh - Chairman of GLE Company said that on March 25.3.2024, 3, Bulog State Purchasing Agency (Indonesia) announced the announcement of the third international bidding opening in 2024 to purchase 300.000 tons of 5% broken rice. . On the morning of March 27.3, Bulog announced the winning bid results and Vietnam won 108.000 tons of rice in this bidding package.
“Indonesia's total rice import quota in 2024 is up to 3,6 million tons of rice, which is not a small number. In just the first 3 months of 2024, Bulog has opened 3 bidding packages to buy a total of 1,1 million tons of rice out of the total 3,6 million tons of rice expected to be imported in 2024. This creates opportunities for export. Vietnamese rice continues to prosper" - Mr. Vu Tuan Anh said.
The Philippines is also a country that imports Vietnamese rice in large quantities. Citing information from the Philippine Department of Crop Production, the Ministry of Agriculture and Rural Development (MARD) said that this country imported over 793.753 tons of rice. Of which, Vietnam is the main supply market with over 431.846 tons (Thailand ranked second with over 210.127 tons).
"The US Department of Agriculture (USDA) forecasts Philippine rice output at 12,125 million tons, higher than the same period, however, this is still a potential market for Vietnam's rice exports" - Mr. Vu Tuan Anh informed. more.
Vietnam's export rice supply is abundant
According to data just released by the General Statistics Office, the output of winter and winter-spring rice crops in the Mekong Delta (MRD) increased by 126 thousand tons (up 1,1%); Of which winter-spring rice output is estimated at 10,7 million tons, an increase of 65 thousand tons (up 0,6%); Summer rice output reached 974 thousand tons, an increase of 60 thousand tons (up 6,6%). This is a quite large number when winter-spring rice production in the Mekong Delta accounts for over 50% of the country's winter-spring rice production. Abundant supply has pulled rice prices down slightly.
A rice exporter in Long An (asked not to be named), said: Vietnam and Thailand are both in peak harvest time, with abundant rice sources, so traders are forced to reduce rice prices. This makes rice export traders "breathe easily", because currently the export price of rice in most countries has decreased.
Reducing export prices will make it easier to compete when currently, the export price of Vietnamese rice is the lowest among the three traditional rice exporting countries (Vietnam, Thailand and Pakistan. India is still temporarily suspending white rice exports). .
According to the Vietnam Food Association (VFA), this week, Vietnam's export rice price decreased by 5 USD/ton. Accordingly, 5% broken rice is exported at a price of 577 USD/ton; 25% broken rice exported at 558 USD/ton; 25% broken rice is offered at a price of 478 USD/ton.
“5% broken rice is the most popular type of exported rice. This type of Vietnamese rice is 4 USD/ton lower than Thai rice of the same type and 24 USD/ton lower than Pakistani rice, creating an opportunity for Vietnamese rice at the negotiating table" - Mr. Vu Tuan Anh said.
According to the Ministry of Agriculture and Rural Development, in the first 3 months of 2024, rice exports reached 1,37 billion USD, with an amount of 2,07 million tons, an increase of 40% in value and an increase of 12% in volume. The average rice export price reached 661 USD/ton, an increase of 5%.
