07.02.2023, 16:02

Vietnamese rice price rise to highest level in 2 years

Vietnamese rice price rise to highest level in 2 years

After the Lunar New Year holiday, Vietnam’s export rice price increased sharply, to the highest level in the past 2 years.

In early February, rice prices in the world market fluctuated quite strongly. Accordingly, the export price of Vietnam’s rice on February 5 increased by 15 USD/ton compared to the end of last month. Specifically, 5% broken rice traded at 473 USD/ton, 25% broken rice at 453 USD/ton. This is the highest price in the past few years.

However, this price is still 20 USD lower than Thai rice and 10 USD/ton lower than Pakistani rice. Previously, in December 2022, the export price of Vietnam’s 5% broken rice remained at the highest level in the world with about 438 USD/ton; 25% rice at 418 USD/ton (about 20 USD/ton higher than Thai rice of the same type).

Mr. Do Ha Nam – Vice Chairman of the Vietnam Food Association – said that usually at the end of the season the rice price is very low, so importers base on that price to negotiate to buy the winter-spring crop. However, this year, we sold at a high price, so the contracts signed for the winter-spring crop in 2023 will have better prices.

Rice exporters are busy preparing goods in the first days of the new year.

According to Mr. Nam, the price of rice for export in the first month of 2023 increased due to economic and political uncertainties, the conflict between Russia and Ukraine has not ended, countries have more demand for food reserves.

“Currently, many major rice importing countries from Vietnam such as China, the Philippines, Africa… are actively purchasing rice for reserve. Particularly, the Philippines – Vietnam’s largest rice-consuming market – has had positive signals for export activities for 2023 when the country decided to maintain the import tax at 35%,” said Mr. Nam.

Positive signals from the market have prompted many rice export contracts to be signed. Trung An High-tech Agriculture Joint Stock Company said that it has signed many contracts to supply rice for delivery from now until the beginning of the second quarter of 2023 to the markets of Korea, Malaysia, Singapore, Europe, Australia and the US, volume up to nearly 1,500 containers, equivalent to about 30,000 tons, mainly high-quality rice and fragrant rice.

Mr. Pham Thai Binh – General Director of Trung An Hi-tech Agriculture Joint Stock Company – said that right from the 4th of Tet, the company has returned to production to promptly deliver goods to partners.

“The company’s selling price of quality rice to the European market skyrocketed, maintaining at a high level of 600-1,250 USD/ton. Even 100% broken rice sells for up to 468 USD/ton,” said Mr. Pham Thai Binh.

The representative of Loc Troi Group announced that the enterprise has now received orders of up to 40,000 tons of rice for the European market in 2023. With an impressive opening, the representative of Loc Troi believes that in 2023, rice exporters will continue to win big, exceeding the 3.5 billion USD figure set by the rice industry in 2022.