Exports to key markets fell sharply

A recent report from the Ministry of Agriculture and Environment shows that the volume of rice exported in February is estimated at 560,000 tons, earning 288.2 million USD. Accumulated to the end of February, our country exported 1.1 million tons of rice, worth 613 million USD.

Compared to the same period last year, the volume of exported rice increased by 5.9% but the value decreased sharply by 13.6%. The reason is that the average export price in the first two months of this year only reached 553.6 USD/ton, down 18.3% compared to the same period in 2024.

Notably, the Philippines is Vietnam's largest rice consumer with a market share of 38.6%. However, exports to this traditional market fell sharply by 35.5%.

Similarly, the second largest rice consumer, Indonesia, has almost temporarily stopped buying this product from our country.

On the contrary, some other markets increased their purchases sharply. Accordingly, rice exports to Ivory Coast increased 8.6 times, to Ghana increased 4.1 times, and to Türkiye increased dramatically by more than 600 times.

At the meeting on the production and consumption of rice in the Mekong Delta on April 4, Mr. Ngo Hong Phong - Director of the Department of Quality, Processing and Market Development (Ministry of Agriculture and Environment) - said that the total cultivated area in 2025 is expected to be about 7.03 million hectares, with an estimated output of 43.14 million tons.

Total export volume of rice in the first 6 months of the year is estimated at 4.53 million tons and in the last 6 months of the year is estimated at 3.012 million tons.

Regarding the global rice market, according to Mr. Phong, rice trade in 2025 will reach 58.5 million tons, an increase of 450 tons compared to the previous forecast but lower than in 2024.

Meanwhile, India resumed its export activities, pushing a large volume of goods into the market, putting pressure on rice prices. Not to mention, increased rice production in Vietnam, Thailand, and Pakistan has caused a global surplus, causing export rice prices to fall sharply.

Data from the Vietnam Food Association (VFA) shows that on March 3, the export price of 5% broken rice from Vietnam decreased to only 390 USD/ton, and 25% broken rice decreased to 365 USD/ton.

Consider triggering floor price, buying reserves

Faced with the difficulties of the rice industry, Mr. Do Ha Nam - Vice President of VFA - proposed that the State Bank consider creating conditions for people and businesses to access and borrow capital at low interest rates. From there, they will be able to stockpile goods, be more proactive about commodity prices, and avoid the situation of massive sales.

In addition, VFA leaders also proposed that the Ministry of Industry and Trade issue regulations on floor prices for rice exports according to Decree 107/2018/ND-CP. According to VFA, the floor export price can be considered at 500 USD/ton (FOB price).

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VFA proposes to set the floor price for rice exports at 500 USD/ton. Photo: Hoang Ha

Regarding the story of activating the floor price, Deputy Minister of Industry and Trade Nguyen Sinh Nhat Tan said that the ministry is researching; along with that is activating reserves, ensuring stabilization work.

This is also one of the solutions contributing to stabilizing rice prices. At the same time, the Ministry of Industry and Trade will continue to promote negotiations to open new markets in addition to traditional markets to ensure sustainable rice exports in the long term, Deputy Minister Tan emphasized.

Minister of Agriculture and Environment Do Duc Duy acknowledged that the sharp drop in rice prices on the world market has affected the domestic market, especially when we are entering the main winter-spring crop season with large output in the Mekong Delta region.

According to the Minister, we must re-determine the extent and the causes, and from there propose management solutions to stabilize the rice market and develop sustainably.

After this conference, the Ministry of Agriculture and Environment will compile 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. The report is expected to be completed in the afternoon of March 4 or March 5.

Rice export prices have broken bottom at $395 per ton, much lower than other countries in Asia. Meanwhile, the Ministry of Agriculture and Rural Development estimates that it can export nearly 15.09 million tons of "golden grain" this year, equivalent to 7.54 million tons of rice.