Vietnam's rice export price falls to record low for the first time in 2 years

According to the Vietnam Food Association (VFA), the export price of 5% broken Vietnamese rice has dropped by 17 USD, to only 485 USD/ton. The price of about 500 USD/ton has "temporarily said goodbye" to Vietnamese rice after nearly 2 years of stability in the market.

The export price of 5% broken Vietnamese rice has dropped sharply, to only 485 USD/ton. In the photo is a rice growing area in Bac Lieu province - Photo: QUANG DINH

On December 25, Tuoi Tre Online recorded the Vietnamese rice export market. According to the VFA update, the price of 5% broken rice decreased by 17 USD, to only 485 USD/ton.

Lowest in 19 months

Meanwhile, for the same type of 5% broken rice, Thai rice is priced at 501 USD/ton; Indian rice is priced at 449 USD/ton; and Pakistani rice is priced at 452 USD/ton.

This proves that the price of Vietnamese rice is not only lower than that of Thai rice, but also the lowest in the past 19 months.

Similarly, the prices of 25% broken rice and 100% broken rice exported by Vietnam also fell, respectively at 459 USD/ton (down 11 USD, while Indian rice did not decrease, Thai rice only decreased 1 USD/ton) and 388 USD/ton (down 17 USD, while Thai and Pakistani rice only decreased 3 USD/ton).

What reason?

What is the reason for the sharp drop in export prices of Vietnamese rice? According to exporters, the reason is that enterprises from the traditional customer and also the world's largest rice importer, the Philippines, have temporarily stopped importing rice, waiting for the upcoming winter-spring crop.

According to the Philippine press, the country's Ministry of Agriculture reported that the National Food Authority's reserve warehouse has 6 million bags of rice (50kg/bag) that have been left for too long and are at risk of being damaged; forced to sell them on the market at a cheap price of only 30 pesos/kg (more than 13,000 VND) instead of the market price of 40 pesos/kg (more than 17,000 VND).

In addition, the Philippine press also reported that the head of the Philippine Department of Agriculture plans to sign a memorandum of understanding to create a level playing field between countries with Pakistan and India, creating price competition if supplying rice to the Philippine market.

May 11, 2024, Philippines buys 3.3 million tons of Vietnamese rice

According to VFA, in 2024, Vietnam will export about 9 million tons of rice, reaching a turnover of 5.8 billion USD. Of which, the Philippines will buy 3.3 million tons of Vietnamese rice, equivalent to 77%. Thailand is second with only nearly 545,000 tons, followed by Myanmar with 185,000 tons and Pakistan with 15,000 tons.

According to the Philippine Department of Agriculture, the country's rice imports hit a record 4.25 million tons; far exceeding the total imports of 2023 at 3.6 million tons, as well as 2022 at 3.8 million tons.

Meanwhile, the US Department of Agriculture forecasts that the Philippines will import 4.5 million tons of rice in 2025.

Source: https://tuoitre.vn/gao-viet-nam-xuat-khau-rot-gia-ky-luc-lan-dau-tien-sau-2-nam-20241225175628928.htm