In response to new developments in the rice export market, at a meeting on the production and consumption of rice in the Mekong Delta organized by the Ministry of Agriculture and Environment on the morning of March 4, the Vietnam Food Association (VFA) proposed the need to issue regulations on the floor price of rice exports.
Vietnam's rice export prices increased in the last week of February after 11 weeks of price declines.
According to the newsletter of the Institute of Policy and Strategy for Agricultural and Rural Development (Ministry of Agriculture and Environment), in the week from February 24, 2025 to February 28, 2025, the price of 5% broken rice of Thailand, India and Vietnam changed compared to the previous week.
Specifically, the price of 5% broken rice from Thailand reached 418 USD/ton, down 2 USD/ton compared to last week due to the depreciation of the Baht after the Bank of Thailand cut interest rates.
India’s 5% broken parboiled rice prices were quoted at $417 per tonne, down $4 per tonne from last week, mainly due to lower demand as buyers have stocked up on rice, while exporters are competing fiercely for market share.
Meanwhile, Vietnam's 5% broken rice prices reached $393 per tonne, up $8 per tonne from the previous week, ending an 11-week streak of price declines, thanks to increased purchases from farmers by processors and exporters.
On the morning of March 4, the Ministry of Agriculture and Environment held a meeting on the production and consumption of rice in the Mekong Delta. Photo: Nguyen Hanh
At the meeting on the production and consumption of rice in the Mekong Delta organized by the Ministry of Agriculture and Environment on the morning of March 4, Mr. Ngo Hong Phong, Director of the Department of Quality, Processing and Market Development (Ministry of Agriculture and Environment) said that in February 2025, rice exports are estimated to reach 560,000 tons with a value of 288.2 million USD, bringing the total volume and value of rice exports in the first 2 months of 2025 to 1.1 million tons and 613 million USD, up 5.9% in volume but down 13.6% in value compared to the same period in 2024.
The Philippines is Vietnam's largest rice consumer market with a market share of 38.6%. Ivory Coast and Ghana are the next two largest markets with market shares of 15.9% and 12.3%, respectively. Compared to the same period last year, the value of rice exports in January 2025 to the Philippines market decreased by 35.5%, while the Ivory Coast market increased by 8.6 times and the Ghana market increased by 4.1 times. Among the 15 largest export markets, the value of rice exports increased the most in the Turkish market with an increase of 600.7 times and decreased the most in the Cambodian market with a decrease of 39.3%.
Indonesia may not need to import rice by 2025, when domestic rice production is expected to reach 33-34 million tons, said Coordinating Food Minister Zulkifli Hasan. According to Zulkifli, developing irrigation systems is one of the priorities of the Indonesian government in its efforts to achieve national food self-sufficiency.
According to the Thai Rice Exporters Association, the country's rice exports are expected to fall 33% in the first quarter of 2025 compared to the same period last year. In the first two months of 2025, Thai rice exports reached 1.1 million tons, down 32% compared to the same period in 2024. In particular, white rice exports decreased sharply. The main reason for this decline is that India resumed white rice exports after a two-year hiatus, along with global rice production increasing by 10 million tons compared to last year.
Proposed regulations on floor price for rice exports
Developments in the rice export market show that timely policies are needed to support farmers and production and business enterprises.
According to Mr. Ngo Cong Thuc, Vice Chairman of An Giang Provincial People's Committee, in 2024, the province exported 587,000 tons of rice, equivalent to 340 million USD. In the first 2 months of 2025, An Giang exported 29,900 tons of rice, equivalent to 15.2 million USD. Given the current rice situation, Mr. Ngo Cong Thuc proposed that the Government, central ministries and branches continue to pay attention to supporting the provinces in the Mekong Delta region to invite corporations and enterprises to invest in agricultural production linkages, helping to form a stable production and consumption chain.
At the same time, there should be more preferential policies to encourage businesses to boldly invest in agriculture and rural areas so that signing and exporting with foreign partners can be stable, helping agricultural production activities develop sustainably.
In February 2025, rice exports are estimated to reach 560,000 tons with a value of 288.2 million USD.
Along with that, An Giang also proposed that the Vietnam Rice Industry Association connect rice processing enterprises to build rice material areas in An Giang to ensure stability in quantity and quality, meeting the export processing needs of enterprises...
On the association and industry side, Vice President of the Vietnam Food Association (VFA) Do Ha Nam proposed that the State Bank consider creating conditions for people and businesses to access capital and have the ability to store goods, thereby being more proactive in terms of commodity prices. Increase the limit for exporting enterprises and rice suppliers, extend the loan period for rice purchases so that they can sell to markets at better prices as well as extend the storage period, avoiding the situation of massive sales. In addition, propose to keep the loan interest rate for rice exporting enterprises at the lowest possible level.
In addition, VFA proposed that the Ministry of Industry and Trade issue regulations on the floor price for rice exports according to Decree 107/2018/ND-CP with the price proposed by the Vietnam Food Association at 500 USD/ton (FOB price). At the same time, strengthen inspection of rice exporting enterprises, especially enterprises that only purchase but do not participate in the processing stage, or enterprises that only participate in trade but do not participate in the export market.
Regarding the proposal of VFA, Deputy Minister of Industry and Trade Nguyen Sinh Nhat Tan said that the Ministry of Industry and Trade is studying it. However, the Ministry of Industry and Trade is also considering activating reserves to ensure price stabilization, and will continue to promote negotiations to open new markets in addition to traditional markets to ensure sustainable rice exports in the long term.
Speaking at the meeting, Minister of Agriculture and Environment Do Duc Duy affirmed: In the first two months of the year, the world rice market situation has fluctuated a lot, especially after India lifted the ban on rice exports and started exporting again in September 2024.
Through monitoring and evaluation by authorities as well as industry associations, it is shown that the reason for the decrease in rice prices is the imbalance between supply and demand in the world market. In particular, supply has increased sharply, demand has increased but has not kept up with the increase in supply, leading to many difficulties in Vietnam's rice exports. Especially, prices have decreased sharply compared to 2024.
This issue also affects the domestic market, especially when we are entering the main winter-spring crop season in the Mekong Delta, with large output. "We must re-determine the extent and the causes, both domestically and internationally, to propose solutions to manage and stabilize the rice market, including both short-term and long-term solutions," Minister Do Duc Duy emphasized.
Faced with fluctuations in the world rice market, Minister Do Duc Duy suggested that localities continue to improve production structures towards shifting to high-quality rice production; especially in expanded areas and increased crops; effectively implement the Project of 1 million hectares of high-quality, low-emission rice; enhance deep processing, with value-added products from dry rice; implement sustainable, environmentally friendly production...
After the meeting on the production and consumption of rice in the Mekong Delta, the Ministry of Agriculture and Environment will synthesize information, develop and submit to the Government a dispatch on management to ensure balance between rice supply and demand in the face of developments in the world and domestic markets.
Source: https://danviet.vn/gia-gao-cua-viet-nam-bat-tang-sau-11-tuan-giam-gia-vfa-kien-nghi-khan-ve-gia-san-xuat-khau-20250304140947622.htm
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