AsemconnectVietnam - The prices of Vietnam’s rice exports reached the highest level in 15 years following export restrictions in some countries.

The price of 5 per cent broken rice has increased to US$590-US$600 per tonne, higher than the US$550-US$575 per tonne of the previous week, reported Vietnam News Agency (VNA).
Vietnam’s average price of exported rice in the first six months of 2023 reached US$539 per tonne, a 10.2 per cent increase over the same period in the previous year, according to the General Department of Vietnam Customs.
Vietnam Jan-July rice exports up 18.7% y/y at 4.8 mln T
Vietnam's rice exports in the January-July period are estimated to have risen about 18.7% from a year earlier to 4.838 million tons, government data showed on Saturday.
Revenue from rice exports in the period is seen up 29.6% at $2.58 billion. July rice exports from Vietnam, one of the world's leading shippers of the grain, were estimated at 600,000 tons, worth $326 million.
Increase rice production this year for export
Vietnam will increase its rice production this year to take advantage of a price surge, the head of the country's Department of Crop Production said on Tuesday.
The country's unhusked paddy output is expected to rise to more than 43 million metric tonnes this year, from 42.7 million tonnes last year, Nguyen Nhu Cuong said in a statement posted on the government's website.
The rice growing area of the upcoming autumn-winter crop in the Mekong Delta will be raised by 7.7% from an initial plan to 700,000 hectares, he added.
Vietnam's 5% broken rice prices rose to $580-$590 per metric tonne on Tuesday from $515-$525 two weeks ago, traders said, after India on July 20 ordered a halt to its largest export category to calm domestic prices. "This is an opportunity for us to boost rice exports," Cuong said.
He said Vietnam's total rice exports this year would rise to 7.8 million metric tonnes from 7.1 million tonnes recorded last year.
"Increasing exports at this time won't threat Vietnam's food security," Cuong said.
Rice shipments from Vietnam in the first seven months of this year were estimated to have risen about 18.7% from a year earlier to 4.84 million metric tonnes, according to the government's preliminary data. Revenue from rice exports in the period was seen up 29.6% at $2.58 billion.
Rice exporters in Thailand and Vietnam are renegotiating prices on sales contracts for around half a million metric tonnes for August shipments, two trade sources said, as India's ban has tightened global supplies.
The chairman of Vietnam Food Association said on Monday the country has no immediate plans to restrict rice exports.
Calls on rice exporters to fulfil contracts amid soaring prices
Vietnam's trade minister on Friday called on the country's rice exporters to honour their export contracts to maintain demand despite a recent surge in prices for the staple grain, state media reported.
Prices of Vietnam's 5% broken rice rose to a 15-year high of $590-$600 per ton on Friday, up from $550-$575 a week ago, traders said, after India on July 20 ordered a halt to its largest export category to calm domestic prices.
Two trade sources said earlier this week that some rice exporters in Thailand and Vietnam were re-negotiating prices on sales contracts for around half a million metric tons for August shipments as India's ban tightens global supplies.
"We need to stick to the signed contracts to protect our reputation," trade minister Nguyen Hong Dien said at a conference, according to Tien Phong newspaper.
Dien called on exporters to focus on ensuring rice quality and avoiding an excess of exports to maintain sufficient domestic supplies and fully meet reserve requirements.
"It's unacceptable for a rice exporting country to face tight supplies and high domestic prices," Dien told the conference.
Vietnam's rice paddy output is expected to rise to 43 million tons this year from 42.7 million tons last year, the head of the country's Department of Crop Production said on Tuesday.
Rice shipments from Vietnam, the world's third-largest exporter after India and Thailand, are expected to reach 7.8 million metric tons this year, up from 7.1 million tons recorded last year.
Exports in the first seven months of this year were estimated to have risen about 18.7% from a year earlier to 4.84 million metric tons, according to preliminary government data.
Vietnamese rice can grow larger UK market share
Vietnam now has a great opportunity to expand its rice market share in the UK after India, the biggest supplier of the grain to this market, banned the export, said Trade Counsellor Nguyen Canh Cuong at the Vietnamese Trade Office in the UK. The UK, home to a community of over 5.5 million Asian-origin people, has high rice demand while it doesn’t produce rice. In 2022, its rice import volume increased 4.1% year on year to over 678,000 tonnes while the value rose 7% to more than 603 million USD.
Last year, Vietnam’s rice export to this market grew strongly to approximate 3,400 tonnes worth over 3.7 million USD, up 24.5% in volume and 34% in value from 2021. However, the country accounts for just 0.6% of the UK’s rice import at present, ranking 14th among exporters there, according to statistics cited by Cuong.
He said the export ban by India, which makes up nearly 27% of the UK’s rice import volume, will trigger a shortage of about 75,000 tonnes of rice in this market in the second half of 2023.
The sudden decline in rice supply from India will create advantages for other exporters, including Vietnam, the Trade Counsellor noted, perceiving that it’s now a good chance for Vietnamese rice to increase its market share in the UK, especially with favourable tariffs generated by the UK - Vietnam Free Trade Agreement (UKVFTA).
If Vietnamese exporters conduct professional marketing in the British market such as advertising in English on the local media, they can gain a bigger market share, including at the restaurants serving Asian tourists who make up a large number among the tens of millions of visitors to the UK each year, according to the official.
Echoing the view, Nguyen Hai Nam, Chairman of EUTEK Group which exclusively distributes the rice brand of ST25 Ong Cua in the UK, held that Vietnam’s long-grain rice has a big opportunity in the UK amid India’s export ban, which will cause supply shortages and inflate prices.
Compiled by T.Huong
Source: Vitic/Reuters