Farmers in the rice planting season in the Mekong Delta province of Dong Thap. (Photo: VNA) Data from the Vietnam Food Association (VFA) showed the export priceof Vietnam's 5% broken rice reached a new milestone of 638 USD per tonne onAugust 11, and 618 USD per tonne for 25%, an increase of 105 USD per tonnecompared to the previous month. In July 2023, the global market prices reachedtheir highest level in the last one and a half decades.
Consequently, average prices in the domestic market for paddy riceincreased by 16.3% in August compared to the previous month, reaching 7,786 VNDper kilo. Average prices for stored rice have increased by 12%, reaching 9,417 VNDper kilo.
Among these, premium white rice saw the most significant increaseof 29.4%, reaching 14,925 VND; 5% broken rice saw a 26.7% increase, reaching 14,633VND per kilo; 15% and 25% broken rice saw a 27% increase, reaching 14,033 VND perkilo.
There are instances in which traders had to compete in pricebidding to purchase young rice from farmers in the Mekong Delta, the country'slargest rice-producing region, driving prices even higher. Some rice exportcompanies have reported a nearly 50% increase in input cost for certainvarieties from just one month before.
Sharp increases have forced rice factories to reduce capacity dueto difficulties in sourcing input and extending delivery time forcustomers.
According to the minister, his ministry has submitted a report tothe Prime Minister's Office regarding recent price hikes as well as a number ofexport bans on rice issued by some governments in major rice-producing regionsaround the world.
He expressed concerns and stressed the importance of avoiding aprice shock as it will affect some of the most vulnerable social groups in Vietnam.However, the country's rice export industry must also be taken intoconsideration before any measures can be taken to curb export.
He said farmers in the Mekong Delta are still in the rice plantingseason. If all goes according to plan, Vietnam will still be able toexport 7-8 million tonnes of rice this year.
As of now, just about 20% of the delta's rice-producing area isunder contract farming while the rest is left to independent trading. Withsurging demand and limited supply, prices will likely climb in the nearfuture.
On August 15, the Ministry of Industry and Trade issued adirective to enhance the transparency of market information, promote trade,develop export markets and stabilise domestic prices.
Under the directive, stronger inspection and control measures willbe implemented on rice trading activities in wholesale and retail points,markets, supermarkets, trade centres, and warehouses across the country to curbspeculation, hoarding, and unreasonable pricing./.
VNA
