Vietnam's 5% broken rice prices rose to $550-$575 per metric ton - their highest since 2011, from a range of $515-$525 a week ago.

"Exporters are anticipating prices to increase further after India's move to curb its exports, and therefore it is risky for them to sign new export contracts now," a Ho Chi Minh City-based trader said.

The ban on exports of non-basmati white rice pushed prices for India's parboiled variety to their highest in 5-1/2 years, at $445-$450 per metric ton versus $421-$428 last week, even as demand was subdued.

India imposed the ban after retail rice prices climbed 3% in a month after late but heavy monsoon rains caused significant damage to crops.

The rising demands for rice in international markets and higher prices are benefiting rice exporters as the number of orders has increased sharply.

According to Bui Thi Thanh Lam, Vice Chairwoman of the Vietnam Food Association (VFA), Vietnam has enjoyed many advantages in rice exports in 2022 and 2023.

In the first six months of the year, rice exports reached 4.27 million tonnes worth 2.3 billion USD, up 22.2% in volume and 34.7% in value over the same period last year.

The Philippines remained the largest rice importer of Vietnam, followed by China. Indonesia has just opened a bid package for 300,000 tonnes of rice which not only boosts the export market for Vietnam but also pushes up rice prices.

According to the Ministry of Industry and Trade, the export prices of rice have been continuously revised up since mid-July. Only in the first two trading sessions of the week, Vietnam's export rice prices had two consecutive upward adjustments with an increase of 15 USD per tonne.

Specifically, on July 19, the country’s 5% broken rice was offered at 528 USD per tonne and Vietnam’s 25% broken rice price was 508 USD per tonne, about 20 USD higher compared to those at the beginning of the month.

Although the export of goods has faced many difficulties, there have been encouraging signals in the past two months as enterprises and state management agencies have been actively implementing solutions to regain export momentum.

Phan Van Co, Marketing Director of VRICE Co. Ltd, said that India's official ban on rice exports will make world rice prices increase sharply in the coming time. Vietnam is in the world's top three rice exporters, so it will have advantages in shipping rice abroad, especially in terms of selling prices, he added.

 Vietnam’s 5% broken rice was offered at 533 USD per tonne while those of Thailand, India and Pakistan were 541 USD, 493 USD and 533 USD, respectively. The price of Vietnam's 25% broken rice was also up to 513 USD per tonne, marking the highest prices in history, Co said, adding that the prices of Vietnamese rice will continue to rise.

Rice is one of the commodities seeing an increase in export turnover in the first six months of this year. According to the General Department of Customs, about 4.27 million tonnes of rice worth 2.3 billion USD was shipped abroad in the reviewed period, rising 22.2% in volume and 34.7% in value year on year.

Despite a bright outlook predicted for rice exports in the second half of 2023, the rice sector still needs more support to shift from quantity to quality to seize global market opportunities.

About 6.6 million tonnes of milled rice in the Mekong Delta, the biggest rice production centre of Vietnam, is planned to be exported in 2023, including 3 million tonnes of high-quality rice, 2.1 million tonnes of fragrant and specialty rice, 0.9 million tonne of medium-quality rice, and 0.6 million tonnes of glutinous rice.

 In the first six months of 2023, about 4.27 million tonnes of rice worth 2.3 billion USD was shipped abroad, rising 22.2% in volume and 34.7% in value year on year. Export prices averaged 539 USD per tonne, up 10.2%, according to the Quality, Processing and Market Development Department under the Ministry of Agriculture and Rural Development (MARD).

 Favourable conditions are now in place for rice export, especially during the second half of 2023, as major markets like China, the Philippines, and Malaysia are still purchasing large volumes of the grain.

 Compiled by T.Huong

Source: Vitic