Processing enterprises worried because rice prices are high

Rice prices remain high and are likely to remain high for a long time, causing many food production businesses for the peak consumption season at the end of the year to face a lot of pressure, especially businesses producing vermicelli, noodles, pho...

Many businesses producing vermicelli, dried pho... are under pressure with prolonged high rice prices - Photo: BT

According to records in the Ho Chi Minh City market, currently rice price Retail sales at many stores and companies have not cooled down much compared to previous months. Even some lines are high and tend to increase.

Prices of many popular rice varieties remained high throughout the year.

According to a survey at many retail stores, the price of regular rice/common white rice is at 17,000 - 19,000 VND/kg; long-grain Thai fragrant rice is 21,000 - 23,000 VND/kg; Jasmine fragrant rice is 19,000 - 22,500 VND/kg; Huong Lai rice remains at 22,000 - 23,500 VND/kg...

Meanwhile, according to the quotation information of An Binh Phat Company (HCMC), retail price For popular rice varieties such as 404 rice (10% broken) the price is 16,500 VND/kg; Huong Lai rice, old 504 rice 18,500 VND/kg; Thai fragrant rice 20,000 VND/kg; Tam Thom rice, Nang Thom Cho Dao rice 23,000 VND/kg; Long Lai ST 21 rice 24,000 VND/kg; Cambodian Jasmine rice 27,000 VND/kg...

Many consumers said that the above rice prices have decreased slightly compared to the record highs of previous months. However, in general, the decrease is quite modest, many popular types such as Tam Thom rice, Nang Thom Cho Dao rice, Huong Lai rice... are still at high levels for a long time, even increasing at times.

Meanwhile, according to information from businesses, although there have been periods of increase and decrease, rice prices have generally remained high for many months. Specifically, the current rice price traded in production areas such as IR 50404 rice is being bought at around 7,600 - 8,000 VND/kg; Dai Thom 8 rice is being bought at 8,400 - 8,700 VND/kg; Nang Hoa 9 rice is being kept at around 7,000 VND/kg ...

Enterprises producing vermicelli, noodles... are worried.

With rice prices remaining at a persistently high level, Many food production businesses for the peak consumption season at the end of the year said they are facing a lot of pressure.

Talk to Tuoi Tre Online , representative of Duy Anh Food Company (HCMC) said that with peak production volume of up to tens of tons of goods per day, mainly vermicelli, noodles, rice paper, rice is the main source of raw materials for production. However, the increase and high price of rice for nearly a year has caused great difficulty in balancing input costs and maintaining stable selling prices to compete.

"Consumption demand tends to decrease, while partners require competitive prices. The prolonged high price of rice forces the unit to be cautious in signing contracts, which may require calculating and accepting reduced profits."

According to Ms. Le Thi Giau - Chairwoman of the Board of Directors of Binh Tay Food Joint Stock Company (HCMC), the type of rice used to produce vermicelli, pho, noodles, rice paper... previously cost only about 10,000 - 12,000 VND/kg, but in the past year it has increased to 16,000 - 17,000 VND, even 18,000 VND/kg.

Therefore, despite having reserves, the prolonged high price of rice has put pressure on businesses, especially at a time when they have to increase production to meet year-end orders.

"Most of the products are in the market stabilization program, so the company's point of view is to try to find the best possible source of raw materials to offer stable product prices," said Ms. Giau.

Similarly, a representative of the Ho Chi Minh City Food Association confirmed that many businesses producing vermicelli, noodles, etc. are having a headache with rice prices as they enter the time of accelerating production to serve the peak season at the end of the year, when demand can double as usual.

"Common products such as vermicelli, noodles, rice paper... currently use 90-95% of rice as raw material. To cope with the increase in rice prices, establishments must find ways to save as much as possible in order to reduce production costs, negotiate with customers about selling prices to win orders. In case of increasing selling prices, it is also a force majeure."

Source