According to some rice processing and exporting enterprises, in about a week, the harvest will be in full swing in the An Giang, Dong Thap and Kien Giang regions.
Traders buying OM18 rice at 6,400 VND/kg affirmed that farmers renting land to grow rice will suffer losses, while those growing rice on their own land will break even - Photo: BUU DAU
Rice processing and exporting enterprises said that Vietnam exports broken rice but in small quantities, and that India's decision to export 100% broken rice again will compete with broken rice used for food processing, not with rice for eating, so it will not have much impact on the price of Vietnamese exported rice.
Records in some areas in the Mekong Delta show that this year's winter-spring rice crop has achieved quite high yields, in some places reaching about 1 ton/cong of rice.
Therefore, although the price of rice has decreased sharply compared to the same period last year, farmers who grow rice on their own land still make a profit. Farmers who rent land to grow rice will certainly suffer losses.
Rice prices increase slightly, farmers still worry
Mr. Nguyen Thanh Nhon (residing in Vinh Khanh commune, Thoai Son district, An Giang) said that OM34 rice was bought by traders at the field at 5,400 VND/kg, an increase of 100 VND/kg compared to the price his family sold after harvesting 5 hectares of rice previously, with a high yield of about 1 ton/cong.
"Compared to the same period last year, rice prices are 2,000 VND/kg lower, while fertilizer prices are on an upward trend.
Specifically, before I bought it for 550,000 VND/bag of cold fertilizer, but now it has increased to 650,000 - 670,000 VND/bag.
"If only fertilizer prices did not increase, it would be better, but now everything is increasing. If the price of rice does not increase again during the summer-autumn rice crop, rice farmers will be in trouble," said Mr. Nhon.
According to Mr. Nhon, the Government requested to increase temporary storage purchases, farmers were excited but the winter-spring rice was almost gone.
Even if the price goes up, farmers will have no rice to sell. Farmers hope that the price will increase again in the next summer-autumn rice crop, then farmers will feel secure.
"If India opens its rice export market again, our people will be affected more or less. We see that with this situation, Vietnam's rice export will hardly be as effective as in previous years.
Many farmers in Thoai Son area are switching to growing long grain rice and fragrant rice such as OM18 and Dai Thom 8 to sell at a higher price than short grain rice such as OM34," said Mr. Nhon.
While watching workers load rice onto boats, Mr. Vo Thanh Dat (living in Tho Son commune, Hon Dat district, Kien Giang province) said that he has been a trader for more than 10 years, specializing in buying rice from farmers and then milling it into rice to sell everywhere.
With the price of 6,400 VND/kg of OM18 rice that he bought from farmers in Tan Tuyen commune (Tri Ton district, An Giang), rice growers find it difficult to make a profit.
This winter-spring crop, he bought over 120 tons of rice to bring to Dong Thap or An Giang to mill and then sell the rice. "With the current price of rice and materials, farmers have no profit. The price of rice must reach 7,000 VND/kg for farmers to make a profit," Mr. Dat affirmed.
Farmers do not benefit much from temporary storage
According to traders, Vietnam's 5% broken rice was offered at $389 a tonne on March 6, down $4 a tonne from last week.
Meanwhile, Thai traders said demand was flat and price fluctuations would largely depend on the exchange rate. Thai 5% broken rice prices were unchanged at $415 a tonne, compared with a range of $415-$420 last week.
Talking to us, Mr. Nguyen Chi Thanh - director of the rice industry of An Giang Import-Export Joint Stock Company (Angimex) - said that Vietnam exports broken rice but in small quantities, and that India's decision to export 100% broken rice again will compete with broken rice used for food processing, not with rice for eating.
Vietnam exports white rice including 5%, 10%, 15%, 25% broken rice. 25% broken rice is considered edible rice but has a lower quality than 5% broken rice. Indian broken rice is mainly used for animal feed, cake flour, wine making...
"India's opening of this plate export segment has little impact on Vietnam. For many years, Vietnam has been importing plates from India, while the amount of plates exported from Vietnam is very small," Mr. Thanh analyzed.
According to some rice processing and exporting enterprises, in about a week, the harvest will be in full swing in the An Giang, Dong Thap and Kien Giang regions.
However, the rice output at this time has already been ordered by traders. Therefore, at this time, the Government requires temporary purchase and storage, and farmers do not benefit as much as the Government expected.
A business confirmed that after the Government's telegram, ministries and branches will start implementing it, which will take at least more than a month. At this time, the rice crop in the fields has ended, and farmers are preparing to enter the summer-autumn rice crop. Businesses often use winter-spring rice as reserve rice.
"The price of rice has gone up, but farmers don't have much rice left. In my opinion, this time, planning temporary storage will only help farmers to some extent. Because the rice has been priced by businesses and factories with farmers when it is ripe," he added.
The price of Vietnamese broken rice is lower than the price of 100% broken rice from India.
Previously, on March 7, India decided to completely restore rice exports by allowing the export of 100% broken rice, causing concerns that it would cause rice prices in competing countries to fall sharply.
India's 100% broken rice is being offered at $330 a tonne, higher than $300 a tonne from Vietnam, Myanmar or Pakistan.
Although the price difference is still there, the return of Indian rice will cause the market to adjust prices downward.
India's 5% broken parboiled rice was quoted at $409-$415 a tonne, down from $413-$420 last week. India's 5% broken white rice was quoted at $390-$400 a tonne this week.
The Ministry of Industry and Trade plans to meet with the Vietnam Food Association (VFA) and businesses in March 2025 to organize trade promotion programs in the Philippines and China markets.
According to VFA, only Thai broken rice at $356/ton is higher than Indian products, while Vietnamese broken rice is only $307/ton and Pakistani broken rice is $308/ton.
Prevent fluctuating rice pricesSource: https://tuoitre.vn/an-do-mo-cua-xuat-khau-gao-100-tam-gao-viet-khong-bi-anh-huong-nhieu-20250312081925133.htm
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