VFA proposes to issue regulations on floor prices for rice exports

In the context of falling domestic and export rice prices, in addition to recommendations to support access to capital, VFA proposed to issue regulations on floor prices for rice exports.

On the morning of March 4th, the Ministry of Agriculture and Environment held a meeting on the production and consumption of rice in the Mekong Delta. Minister of Agriculture and Environment Do Duc Duy chaired the meeting. Also attending were Deputy Minister of Industry and Trade Nguyen Sinh Nhat Tan, Deputy Minister of Agriculture and Environment Tran Thanh Nam; representatives from departments and divisions of both ministries; representatives from localities; and representatives from associations and industries.

Export rice prices have fallen in many countries.

Speaking at the meeting, Mr. Ngo Hong Phong, Director of the Department of Quality, Processing and Market Development (Ministry of Agriculture and Environment), informed that in 2025, the total cultivated area is expected to be approximately 7.03 million hectares, with an estimated yield of 61.6 quintals/hectare, and an estimated production of 43.14 million tons (a decrease of 323,000 tons compared to 2024).

Export rice prices in early February 2025 fell to their lowest level in nine years. (Illustrative image)

The estimated annual rice production in the Mekong Delta region is 3.8 million hectares, with an estimated average yield of 63.09 quintals/hectare, and an estimated output of 24.057 million tons. The total amount of rice available for export in the first six months of the year is estimated at 4.53 million tons; the total amount of rice available for export in the last six months of the year is estimated at 3.012 million tons.

Regarding the global rice situation, according to the US Department of Agriculture (USDA), global rice production in February 2025 is projected to reach 532.7 million tons, a record high, but slightly lower than previous forecasts. Total global rice supply is expected to reach 712.15 million tons, 9.2 million tons higher than the previous year. Global consumption is estimated at 530.5 million tons, an increase compared to the previous year, mainly driven by China and Indonesia. Ending stocks are projected at 181.6 million tons, slightly lower but still higher than the previous year.

Rice trade in 2025 is projected to reach 58.5 million tons, an increase of 450 tons compared to the previous forecast, but lower than in 2024. India and Kazakhstan are increasing exports, while Argentina and the US are lowering their forecasts. Imports are increasing in China, the EU, Japan, Sri Lanka, the US, and other countries.

“In the first two months of 2025, rice prices decreased globally. Specifically, Thai rice prices fell by 10-11%; Vietnamese rice prices fell by 6%… High production continues to put downward pressure on prices, however, import demand from China and Indonesia may support the market,” Mr. Ngo Hong Phong shared.

Proposal to introduce a floor price regulation for rice exports.

At the meeting, delegates also shared the common view that the main reason for the recent sharp decline in rice prices was increased supply and decreased demand. In addition, India's resumption of exports pushed supply onto the market, putting significant pressure on rice prices. Global supply is in surplus, with increased production in India, Vietnam, Thailand, and Pakistan.

On the morning of March 4th, the Ministry of Agriculture and Environment held a meeting on the production and consumption of rice in the Mekong Delta. Photo: Nguyen Hanh

Importing markets such as the Philippines and Indonesia have already stockpiled sufficient supplies, waiting for rice prices to continue falling, thus further driving down prices. In addition, another reason worth mentioning is that Vietnam's rice production, procurement, processing, and export chain is currently not sustainable.

From a local perspective, Mr. Ngo Cong Thuc, Vice Chairman of the People's Committee of An Giang province, said that in 2024, the province exported 587,000 tons of rice, equivalent to 340 million USD. In the first two months of 2025, An Giang exported 29,900 tons of rice, equivalent to 15.2 million USD.

Given the current situation regarding rice production, Mr. Ngo Cong Thuc proposed that the Government and central ministries and agencies continue to pay attention to and support the provinces in the Mekong Delta region in inviting corporations and businesses to invest in agricultural production linkages, helping to form a stable production and consumption chain.

At the same time, more preferential policies are needed to encourage businesses to boldly invest in agriculture and rural areas, so that contracts and exports with foreign partners can be stable, helping agricultural production develop sustainably.

In addition, An Giang also requested the Vietnam Rice Industry Association to connect rice processing businesses to build rice raw material areas in An Giang to ensure stability in quantity and quality, meeting the processing and export needs of businesses...

On the part of associations and industries, Vice President of the Vietnam Food Association (VFA) Do Ha Nam suggested that the State Bank of Vietnam consider creating conditions for people and businesses to access capital and stockpile goods, thereby being more proactive in controlling commodity prices. He proposed increasing credit limits for rice exporting and supplying businesses, extending loan terms for rice purchases to enable them to sell to markets at better prices, and extending storage periods to avoid overstocking. Furthermore, he suggested setting interest rates for rice exporting businesses as low as possible.

In addition, the VFA proposed that the Ministry of Industry and Trade establish a floor price for rice exports in accordance with Decree 107/2018/ND-CP, with the price proposed by the Vietnam Food Association being 500 USD/ton (FOB price). Simultaneously, it suggested strengthening inspections of rice exporting enterprises, especially those that only purchase rice without participating in processing, or those that only engage in trading without participating in the export market.

Strengthen market monitoring and expand exports.

Taking note of the opinions expressed at the meeting, Deputy Minister of Industry and Trade Nguyen Sinh Nhat Tan stated that 2024 marked a great success in rice exports, with a record volume of over 9 million tons and export rice prices reaching their highest level ever.

Deputy Minister of Industry and Trade Nguyen Sinh Nhat Tan shared this information at a meeting on the production and consumption of rice in the Mekong Delta. Photo: Nguyen Hanh

However, by the end of 2024, the trend in export rice prices had already undergone a significant adjustment. Entering the beginning of 2025, exports began to stagnate and prices declined.

In the context of rice exports, the search for new markets alongside maintaining traditional ones has been underway and needs to be further promoted. This is coupled with adjustments to the structure and types of rice, with a particular focus on rice quality.

According to Deputy Minister Nguyen Sinh Nhat Tan, we have also seen significant changes in controlling export issues related to processing and production. This was implemented in 2024 and is expected to see a noticeable improvement in 2025. For this activity, the coordinating role of the Ministry of Agriculture and Environment, as well as the involvement of associations, businesses, and industries, is extremely important.

The Ministry of Industry and Trade will acknowledge and consider the recommendations of associations, industries, and localities, including the implementation of Decree 107/2018/ND-CP on rice export business. A specialized conference on rice exports is expected to be held soon.

Regarding the issue of activating a price floor, the Ministry of Industry and Trade is currently studying the matter. However, the Ministry is also considering activating reserves to ensure price stabilization. The Ministry will coordinate with relevant units to investigate this. This is also one of the solutions contributing to stabilizing rice prices. At the same time, the Ministry of Industry and Trade will continue to promote negotiations to open new markets alongside traditional markets to ensure sustainable rice exports in the long term.

We will submit a directive to the Government regarding rice management.

Speaking at the conference, Minister of Agriculture and Environment Do Duc Duy affirmed: In the first two months of the year, the global rice market experienced many fluctuations, especially after India lifted its rice export ban and began exporting again in September 2024.

Minister of Agriculture and Environment Do Duc Duy speaks at the meeting. Photo: Nguyen Hanh

Monitoring and assessments by relevant authorities and industry associations indicate that the cause of the rice price drop is an imbalance between supply and demand in the global market. Specifically, supply has increased sharply, while demand has also increased but not at the same rate, leading to difficulties for Vietnam's rice exports. This is especially true given the significant price drop compared to 2024.

This issue also impacts the domestic market, especially as we are currently in the peak season of the Winter-Spring crop in the Mekong Delta, when production is high.

"Given this situation, the Ministry of Agriculture and Environment organized a conference with representatives from relevant ministries and agencies, as well as leaders from localities, associations, key industries, and businesses to identify and accurately assess the situation," Mr. Do Duc Duy shared.

Given the current challenging situation, Minister of Agriculture and Environment Do Duc Duy believes that we must reassess the extent and causes of the problem, both domestically and internationally, in order to propose solutions for managing and stabilizing the rice market, including both short-term and long-term measures.

Taking note of the opinions of ministries, sectors, localities, and associations, Minister Do Duc Duy said that after this conference, the Ministry of Agriculture and Environment will compile information, develop, and submit to the Government a directive on managing and ensuring a balance between rice supply and demand in the face of developments in the world and domestic markets. The report is expected to be completed this afternoon or tomorrow.

In 2024, Vietnam's rice exports reached a record high of 9.18 million tons with a value of $5.75 billion, an increase of 12.9% in volume and 23% in value compared to 2023.

According to the Ministry of Agriculture and Environment, the rice export volume in February 2025 is estimated at 560 thousand tons with a value of 288.2 million USD, bringing the total rice export volume and value in the first two months of 2025 to 1.1 million tons and 613 million USD, up 5.9% in volume but down 13.6% in value compared to the same period in 2024.

Source: https://congthuong.vn/vfa-de-xuat-dua-ra-quy-dinh-gia-san-xuat-khau-gao-376697.html