The "hot" increase in rice prices makes it difficult for production facilities and export businesses.

The rapid increase in rice prices in recent times has directly affected the consumption, production and business activities of people and enterprises in Ha Tinh .

Rice prices increase daily

According to information from the Vietnam Food Association, in early August, the export price of 5% broken rice from Vietnam exceeded the 600 USD/ton mark, the highest price in more than 10 years. In Ha Tinh, according to some large agents specializing in trading and retailing rice, currently, rice prices are following the increasing trend of the domestic and world markets, so they are also "anchored" at a high level.

Accordingly, the price of rice has increased by an average of 1,000 VND - 3,000 VND/kg compared to 1 month ago. In particular, some local rice varieties such as Thien Uu 8, Thai Xuyen 111... have increased by about 1,000 VND - 1,200 VND/kg. High-quality rice varieties from the South such as ST25, Soc Trang fragrant rice, Tam Thai, Lai Huong... have increased in price by 2,000 VND - 3,000 VND/kg, ranging from 13,500 VND - 21,500 VND/kg depending on the type.

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Rice prices have increased. Retail rice prices in Ha Tinh have increased by an average of 1,000 VND - 3,000 VND/kg compared to 1 month ago.

Ms. Nguyen Thi Tam - owner of Tam Cuong rice agent (Ha Tinh city) said: "I have never seen rice prices increase so "dizzily". Rice prices have been continuously increasing for the past 2 weeks, sometimes changing every hour. Although the market price increases, agents like us also have to adjust prices, but if prices increase continuously, customers will react immediately."

Not only the price of rice has increased, the price of purchasing rice has also "heated up" according to information from the country's rice export activities, although this is not the time for concentrated and widespread rice purchasing in the area. Ms. Nguyen Thi Hanh - Director of Hanh Cuong Agricultural Products Processing Service and Trading Cooperative shared: "This time, we only purchase about 5 - 7 tons of rice from various places each day because the summer-autumn harvest has not yet begun. However, according to the national market, the price of rice in the area has also increased rapidly in the past few weeks. Accordingly, the price of Khang Dan 18 and Xuan Mai rice fluctuates at 9,000 VND - 9,500 VND/kg; Glutinous rice is from 8,000 VND - 8,500 VND/kg, an increase of 600 VND - 1,000 VND/kg compared to last month".

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Hanh Cuong Agricultural Products Processing Service and Trading Cooperative (Thach Binh, Ha Tinh City) had to accept to buy rice at high prices to meet orders with partners.

According to traders, the reason for the high price of paddy and rice is that many sources and businesses are collecting goods for export. Currently, the markets of China, the Philippines, and Indonesia are increasing the import of Vietnamese rice because of concerns that the supply of this staple product will be in short supply after India ordered a temporary suspension of rice exports on July 20, the United Arab Emirates (UAE) imposed a ban on rice exports for 4 months (July - November) from July 28, Russia announced a temporary suspension of rice exports until the end of 2023 from July 29...

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The increase in rice prices directly affects people's consumption.

People and businesses are worried

The rice market in Ha Tinh is small, basically serving the consumption needs and stabilizing food security of the people. However, in recent days, information about the continuous increase in domestic rice prices has made many consumers worried. Mr. Phan Xuan Manh (Bac Ha ward, Ha Tinh city) said: "Rice is an indispensable food item, so the price increase will affect the spending of each family. I don't know when the price will increase, so instead of buying 1 yen like usual, this time, I took the opportunity to buy 3 yen to store at home."

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Rice reserves of purchasing facilities and enterprises in Ha Tinh are basically small in scale, so they are quite passive in the price fluctuations of this commodity.

For Ms. Tran Thi Van - owner of a vermicelli and pho production facility in Viet Tien commune (Thach Ha), rising rice prices are becoming a constant concern at this time. Ms. Van shared: “The price of input rice materials is increasing continuously. In the middle of the month, I only imported rice at 13,000 - 13,500 VND/kg, but now the import price has increased by 2,000 VND/kg, and it is expected to increase further in the next period. However, we cannot increase the price of vermicelli and pho immediately because we still have to keep customers. However, with the forecast of further increase in rice prices, I will have to consider adjusting the selling price of the product because production as it is now is very difficult.”

Meanwhile, enterprises purchasing and exporting rice in the province are also worried about the recent sharp increase in rice prices, directly affecting production and business activities. Mr. Nguyen Khanh Tung - Director of KC Ha Tinh Company Limited said: "Currently, enterprises mainly export rice to countries in Southeast Asia and Africa. Rice purchasing prices have increased while we still have to comply with the prices of previously signed contracts, so enterprises are likely to have to compensate for losses to have enough goods to export. As for new contracts, we have to consider the domestic and world markets, especially waiting for India to lift the ban on rice exports."

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KC Ha Tinh Company Limited currently mainly exports rice to Southeast Asian and African markets.

According to Mr. Vo Ta Nghia - Deputy Director of the Department of Industry and Trade of Ha Tinh, according to Directive No. 24/CT-TTg dated August 5, 2023 of the Prime Minister on ensuring national food security and promoting sustainable rice production and export in the current period, the Provincial People's Committee has directed relevant departments, branches and sectors to proactively review the situation of rice production and export in the area; product supply and demand; have a plan for rice and paddy sources to ensure supply for the market from now until the end of 2023 and the Lunar New Year period of 2024, ensuring the supply of rice and paddy, stabilizing the market. At the same time, monitor market developments, prevent violations of price listing, speculation, hoarding, unreasonable purchase and sale prices for rice products...

Thai Oanh

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