EL Nino causes many countries to increase purchases of Vietnamese rice dozens of times.

In the first 5 months of the year, many countries in Asia and the Middle East rushed to buy Vietnamese rice with turnover increasing from 30% to several dozen times.

The latest report from the Ministry of Agriculture and Rural Development said that rice exports in the first 6 months reached 4.2 million tons, with a turnover of 2.32 billion USD. The average export price of rice in the first 5 months of the year reached 517 USD per ton, up 5.8% over the same period in 2022 (489 USD per ton).

In the first half of this year, the Philippines was Vietnam's largest rice consumer market, accounting for 42.4% of the market share with a volume of 1.5 million tons, equivalent to more than 772 million USD. Next was China with a turnover of 364 million USD, up 72.9% over the same period last year.

In addition to the above two countries, this year, Indonesia has risen from 8th place to the top 3 countries buying the most Vietnamese rice, just behind the Philippines and China. In the first 5 months of the year, Indonesia bought more than 181 million USD worth of rice from Vietnam, an increase of 14 times compared to the same period last year.

Once buying very little Vietnamese rice, this year Chile and Türkiye increased their purchases 28 and 132 times compared to the same period last year.

According to the Ministry of Agriculture and Rural Development, the reason these countries increased their imports of Vietnamese rice is because the "EL Nino" phenomenon appeared, forcing many countries to increase purchases for storage.

In the Philippines, the country's Department of Agriculture predicts the return of El Nino, which could severely impact their domestic food production.

The Indonesian government has predicted that El Nino could cause drought in the country from May to July, so the area and output of agricultural products in the July-August harvest could decrease sharply. Indonesia plans to import 2 million tons of rice this year despite the continuous increase in rice prices.

Similarly, in Chile and Türkiye, drought has also threatened crops in these countries for many years.

Market research firm Fitch Solutions predicts the global rice market will face its most severe shortage in 20 years in 2023. It predicts a deficit of about 8.7 million tons in the 2022-23 crop year, the highest since the 2003-2004 crop year (18.6 million tons).

Currently, Vietnamese rice has been exported to 156 countries and territories, the market structure is increasingly diverse, the types of exported rice have shifted positively towards increasing quality, high added value, and penetrating many high-end rice markets.

According to the Vietnam Food Association, Vietnam's rice export prices are equal to and higher than those of Thailand and India. Specifically, on June 23, Vietnam's 5% broken rice was priced at $503 per ton, up $5 per ton from 10 days earlier, equal to the price of Thailand's 5% broken rice and about $15 per ton higher than the same type of rice from India.

Thi Ha

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