AsemconnectVietnam - Vietnam's export rice price hit more than two-year highs on Thursday on the limited supply and increased demand for rice imports from many countries.

Vietnam's 5% broken rice was offered at $500-$510 per tonne, its highest since the week of April 1, 2021 period and compared with $495-$505 a week ago. "Demand is strong as buying countries are consolidating their stocks to ensure food security," a trader based in Ho Chi Minh City said.
The price of Vietnam's export rice has continuously increased recently due to limited domestic supply when the winter-spring crop has finished harvesting, and the summer-autumn crop has not yet reached the peak harvest time.
Not only Vietnam but the supply of rice from some other major exporting countries is also limited.
In India, Rabi production is forecast to decline due to unfavorable weather conditions. This country's millers tend to maintain inventories, prioritize government orders, and temporarily suspend the supply of significant quantities to the market in the hope that prices will continue to increase in the upcoming time.
As a result, the delivery time for export goods is also three times longer than usual, so Indian traders only focus on delivering signed orders. Supply of export goods is scarce, while mill inventories cannot be estimated.
The domestic price level in India is also increasing as many traders look to buy input materials to deliver contracts to Africa. Given this situation, most Indian rice exporters expect the asking price to remain stable at a high level or go up in the upcoming time. Remarkably, the basmati rice segment recovered after weeks of consecutive price declines supported by demand from Iran, Yemen, and Saudi Arabia.
Vietnam's rice exports in the January-June period are estimated to have risen about 22.2% from a year earlier to 4.27 million tonnes, government data showed on Thursday.
Revenue from rice exports in the same period is seen up 34.7% at $2.3 billion. June rice exports from Vietnam, one of the world's leading shippers of the grain, were estimated at 650,000 tonnes, worth $383 million.
Vietnam to diversify rice export markets
The Strategy on Development of Vietnam's Rice Export Markets until 2030 sets the targets of improving the value of exported rice, and reducing export volume by 2030 to about 4 million tonnes with a turnover of about 2.62 billion USD.
The Ministry of Agriculture and Rural Development reported that last May, Vietnam shipped abroad some 1 million tonnes of rice valued at 489 million USD, raising rice export volume and value in the first five months of this year to nearly 3.9 million tonnes and 2.02 billion USD, representing year-on-year increases of 40.8% and 49%, respectively.
In the first four months of this year, the Philippines was Vietnam’s biggest rice importer, making up 42.4% of the market share. Among Vietnam’s 15 biggest rice buyers, Indonesia experienced the sharpest rise in value (26.3 times), according to the ministry.
Under the strategy, Vietnam's rice sector will also increase exports of high-quality rice. Specifically, between 2023 and 2025, the proportion of low- and medium-grade white rice will not exceed 15%; high-grade white rice will account for about 20%; fragrant rice, japonica rice and specialty rice 40%; sticky rice 20%; rice products with high added value such as nutritious rice, parboiled rice, organic rice, rice flour, rice-processed products, rice bran and some other rice by-products 5%; and rice with brand names 20%.
Nguyen Van Thanh, Chairman and CEO of Phuoc Thanh IV Trading - Production Company Limited, said the adjustments are suitable, explaining that the Mekong Delta, Vietnam's rice bowl, reduced the number of rice crops to only one from three.
Experts said intensive processing will help Vietnam raise its rice value by multiple times, noting it requires investment in science-technology to put the grain on market shelves in Europe, the US, Canada, Japan and the Republic of Korea (RoK).
Deputy Minister of Agriculture and Rural Development Phung Duc Tien said up to 85% of Vietnamese rice varieties are high-quality ones. Therefore, prices of Vietnamese rice have exceeded those of Thailand to stand at 485-495 USD per tonne.
Strategy on rice export market development until 2030 approved
Deputy Prime Minister Le Minh Khai has just signed a decision approving the Strategy on Development of Vietnam's Rice Export Markets until 2030, which aims to develop and diversify rice export markets with a reasonable, stable, and effective scale, market and product structure.
Under the strategy, Vietnam will consolidate traditional and key export markets and develop new and potential ones, and those with which it has signed free trade agreements (FTAs). The country also targets increasing the market share of Vietnamese rice in markets, especially in developed countries.
Vietnam will also associate the export markets with domestic production according to value chains, ensure the quality and safety of exported rice, increasing the presence of Vietnamese rice and products processed from rice in direct distribution channels in markets.
The country also eyes the export of high-quality rice and rice-based products, increase their values, ensure sustainable exports, and affirm the prestige and brand of Vietnamese rice.
T.Huong
Source: Vitic/VNA