15.08.2020, 13:29

Rice prices in Mekong Delta on the increase

Rice prices in Mekong Delta on the increase
The Mekong Delta has recorded an increase in rice prices over recent days. (Photo for illustration)

NDO – Rice prices in the Mekong Delta have been on an increasing trend over recent days.

This is good news for businesses and farmers with rice reserves from the previous crop as the 2020 summer-autumn harvest season is soon ending.

According to a trader purchasing rice in the districts of Tan Hong and Hong Ngu (Dong Thap), IR504 rice sold on the fields recently recorded its sharpest price rise, moving up VND5,700 this week from VND5,500-5,600 per kilogramme the previous week.

The prices of fragrant rice varieties, such as OM5451 and Jasmine 85 (fresh rice), increased by VND500 per kilogramme compared to 10 days previous.

A rice granary owner in the Mekong Delta city of Can Tho said that 10 days ago, he sold 250 tonnes of Jasmine 85 rice stored from the winter-spring crop (2019-2020) at VND7,500 per kilogramme, a profit of VND1,000 per kilogramme compared to the purchase price.

According to rice exporters in the Mekong Delta, Vietnam’s rice export prices in the world market continue to reach high levels, with 5% broken rice being sold at US$478-482 per tonne.

General Director of Trung An Hi-Tech Farming Joint Stock Company Pham Thai Binh attributed the surge in rice prices to the current favourable export market, alongside the fact that the EU-Vietnam Free Trade Agreement (EVFTA) has come into force since August 1, positively affecting the rice industry.

The COVID-19 pandemic has also resulted in a growing demand for rice around the world, he explained.