| Rice export prices still have room to increase sharply in the later part of this year India: Rice export ban affects farmers' income |
Rice prices are high because brokers and traders are hoarding goods.
In recent days, as world rice prices have increased day by day, rice prices in the Mekong Delta have also increased accordingly. Mr. Nguyen Van Thanh, Director of Phuoc Thanh IV Production and Trading Company Limited (Vinh Long Province) - said: Currently, rice prices in localities are fluctuating from 7,800 - 8,000 VND/kg (for Summer-Autumn rice). This price is far higher than the same period last year. Due to the high domestic rice prices, businesses have temporarily stopped collecting.
According to Mr. Thanh, currently most businesses do not keep goods but focus on selling. Because businesses are concerned that the market is changing too quickly and cannot predict the movements from other countries. Therefore, keeping goods is much more risky. However, Mr. Thanh said that on the side of brokers and some traders, there is still a situation of hoarding goods when buying rice from people, then drying and storing the goods in the warehouses of small private establishments.
“More than 95% of the Summer-Autumn rice area of farmers has received deposits from traders 20-30 days before harvest. Therefore, when rice prices increase, traders are the ones who make the most profit while farmers only get a small part,” Mr. Phan Van Co, Marketing Director of Vrice Company Limited, pointed out.
Sharing the same view, Mr. Pham Thai Binh, General Director of Trung An High-Tech Agriculture Joint Stock Company (Can Tho City) said: The situation of brokers and traders hoarding goods to push up prices is a reality in the Mekong Delta region. "There is a large number of traders who have hoarded goods since India banned rice exports and have not sold them, causing rice prices to continuously increase as in recent days" - Mr. Binh said.
 |
| Rice prices are currently high. |
Small orders welcome, large orders delayed
With the current price, only lucky businesses that have stockpiled in advance will not be affected. For example, Phuoc Thanh IV. Mr. Thanh said that the company has completed large contracts in 2023 with the Philippine market. Recently, the company also signed a contract with the Philippine market at 710 USD/ton.
Or with Duong Vu Company Limited (Long An province), Mr. Nguyen Quang Hoa, General Director of this company said: Recently, Duong Vu has sold a few containers of rice at the price of 660 USD/ton to Taiwanese customers. However, according to Mr. Hoa, these are only small customers, not deciding the market, and with traditional customers such as China, Philippines... we have not reached a new price agreement.
"At this time, all major importers are importing old orders, and they have not signed new orders because they do not agree with the price we offer," Mr. Hoa informed.
Meanwhile, for large orders of tens of thousands of tons, due to lack of goods to deliver, some businesses have had to delay the delivery time. For example, Mr. Pham Thai Binh of Trung An Company said that if calculated according to the current domestic rice price, the business must offer at 670 USD/ton to make a "profit". However, the business is currently unable to offer at that price, not to mention the contracts signed a few months ago are all priced below 600 USD/ton.
“If we continue to sell, we will lose money. We are forced to negotiate with our partners to postpone the delivery time to the winter-spring crop. Fortunately, our partners are sympathetic and agree to postpone the order of about 20,000 tons to a more suitable time to avoid buying at high prices at this time,” Mr. Binh shared.
In addition to Trung An, many other businesses were also forced to negotiate to delay delivery to September 2023 due to difficulties in purchasing, and some businesses even canceled contracts.
Forecasting the market from now until the end of the year, businesses said that the rice market will continue to have strong fluctuations. In that context, to avoid risks, businesses will not sign contracts that are too large, but prioritize small, short-term contracts, especially when there are enough new customers to sign new contracts.
| India may soon lift export ban Some international experts and major Indian rice exporters believe that the Indian government's ban on rice exports may not last long as concerns about supply risks from the current crop have subsided. Besides, the International Monetary Fund (IMF) and the Food and Agriculture Organization of the United Nations (FAO) have also continuously urged India to lift the export restriction on white rice as this has pushed up global rice prices. “India will resume exporting white rice under government contracts from September 2023 and traders will be allowed to export white rice under contracts signed before August 30, 2023. Therefore, international rice prices will decrease in the coming time,” said Mr. Phan Van Co. |
Source link
Comment (0)