Rice exports are optimistic in 2023 and will continue to increase in 2024

Vietnam's rice export price sets new peak

According to the Vietnam Food Association (VFA), in the second week of December 2023, Vietnam's rice export price increased by 8 USD/ton compared to the previous week.

On December 8, 2023, despite a decrease of 5 USD/ton, Vietnam's 5% broken rice was still offered on the world market at 658 USD/ton; 25% broken rice was offered at 643 USD/ton.

Pakistan's 5% broken rice export price is at $598/ton, 5% broken rice is at $528/ton.

Myanmar's 5% broken rice was also exported at $613 per tonne.

Although Thailand's 5% broken rice has increased by 30 USD/ton due to the strong increase in rice import demand from the Philippines, the current price of this country's 5% broken rice is at 630 USD/ton, 28 USD/ton lower than Vietnamese rice.

Currently, the supply is not large, rice export has many price advantages. Photo: Tan Long — Currently, rice exports have many price advantages. Photo: Tan Long

Thus, Vietnam's rice export price is at the highest level in the world. This is beneficial for farmers, but also causes many difficulties for rice exporting enterprises, making it difficult to compete on price.

Mr. Nguyen Quang Hoa - Director of Duong Vu Company Limited said that in reality, businesses are selling rice at a higher price than the VFA listed price. Limited supply and high rice prices in the domestic market make it impossible for businesses to sell at low prices to avoid losses.

"Currently, Duong Vu Rice is exporting rice at a price of 670-680 USD/ton. Rice prices are high, so businesses signing contracts to sell as soon as they are signed is the safest solution," said Mr. Hoa.

Rice export potential is still large

Sharing with Lao Dong, Mr. Pham Thai Binh - Director of Trung An High-Tech Agriculture Joint Stock Company excitedly said that in the fourth quarter of 2023, Trung An will continue to export rice to European countries, Australia, Singapore, Dubai..., each order from 3-10 containers.

"Although loading in Korea is currently interrupted due to heavy snowfall, requiring the closure of cargo holds, we have a ship with more than 16,000 tons of rice loading at Busan port, and the delivery will be completed around December 15, 2023.

In particular, we have just signed two orders for the first quarter of 2024, one of which is 460 tons at a price of 785 USD/ton and another of 1,012 tons at a price of up to 860 USD/ton. Both of these orders are exported to the Malaysian market," Mr. Pham Thai Binh shared.

Rice exporters also affirmed: Supply is low, world demand is high, so the export price of rice will continue to be high, not only this year. The world's demand for rice imports is still high, so the opportunity for Vietnamese rice is still great.

Mr. Nguyen Van Don - Director of Viet Hung Company Limited said that the export price of rice increased partly due to a global supply shortage when India continued to restrict white rice exports until before the election next year (around May 2024).

"India's normal rice export output is equal to that of Thailand, Vietnam, Pakistan and Myanmar combined. In addition, the impact of dry weather factors caused by the El Nino phenomenon has caused countries to worry about food insecurity... these are factors that push up rice export prices," said Mr. Nguyen Van Don.

According to the US Department of Agriculture, global rice trade in 2024 is forecast at 52.85 million tons. Countries such as the Philippines, Indonesia, etc. are still increasing their purchases. In particular, Nigeria is forecast to import 2.1 million tons of rice in 2024, becoming one of the world's leading rice importers. This is an opportunity for Vietnamese businesses to increase exports.

It is known that by the end of November 2023, Vietnam's rice exports had reached nearly 7.8 million tons, with a turnover of 4.4 billion USD. Export output is expected to continue to increase in the last month of the year and Vietnam may export more than 8 million tons of rice this year.

Mr. Tran Thanh Hai - Deputy Director of Import-Export Department (Ministry of Industry and Trade):

"To ensure the harmony of export and domestic market interests, the Ministry of Industry and Trade has issued a directive assigning tasks to the Departments of Industry and Trade, units under the Ministry, associations, and enterprises to closely monitor the situation, ensure the supply of goods in the domestic market in accordance with the production situation as well as export progress. In particular, ensure that there is no shortage of rice supply as well as maintain stable rice prices in the market during the upcoming Lunar New Year period."

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