It's almost Tet but rice export prices have dropped to a record low, and domestic rice transactions are also gloomy even though it's the main harvest season.
According to the Vietnam Food Association (VFA), the current export price of 5% broken rice from Vietnam is only at 434 USD/ton, lower than that of Thai rice (479 USD/ton) and at the lowest level in the past 2 years. Similarly, the prices of 25% broken rice and 100% broken rice have also dropped sharply, reaching 409 USD/ton and 326 USD/ton, respectively.
Before price fluctuations Rice, Mr. Tran Thanh Hai - Deputy Director of the Import-Export Department, Ministry of Industry and Trade - explained, rice prices cannot increase forever, when they reach the peak, they will have to decrease. The abundant rice production in the world will affect the world's rice prices, including Thailand and Pakistan, not just Vietnam.
According to the Department of Agriculture and Rural Development (DARD) of An Giang province, domestic rice prices continue to decrease even though farmers have entered the main harvest season. Specifically, on January 14, traders adjusted the purchase price of IR 50404 rice to 6,200 - 6,400 VND/kg, down 900 VND/kg compared to the end of last week. Similarly, OM 5451 rice fell to 6,500 - 6,700 VND/kg, down 1,000 VND/kg.
Meanwhile, OM 380 rice prices remain at 6,600 - 6,700 VND/kg; Japanese rice at 7,800 - 8,000 VND/kg; Nang Hoa 9 at 9,200 VND/kg.
Similarly, with rice, according to an update from the Department of Agriculture and Rural Development of An Giang province, the price of IR 504 raw rice fluctuates at 7,650 - 7,750 VND/kg, down 250 VND/kg; IR 504 finished rice fluctuates at 9,500 - 9,700 VND/kg, down 200 VND/kg.
Local rice transactions are slow and few, new rice transactions continue to be slow due to the continuous fluctuations in rice prices. In many localities, rice transactions have almost stopped today. Enterprises cannot export goods, causing traders to buy less rice, even leave the stake even though it is in harvest season
In many provinces and cities, the amount of rice purchased is low, new transactions continue to be slow, many warehouse owners Tet holiday early. In Soc Trang, there is not much demand for new purchases, many traders have abandoned their deposits. In Dong Thap, farmers offer rice at reduced prices but few traders buy.
A trader in the Mekong Delta said that trading activities this week were gloomy, with weak demand for rice imports in the international market. Due to the lack of new orders combined with low export rice prices, businesses have proactively close the deal, take an early holiday, wait for the price to go up.
This situation is happening in many businesses as the market is expected to continue to be quiet in the coming weeks due to the Lunar New Year holiday.
Mr. Nguyen Ngoc Nam - Chairman of VFA - said that rice exports in 2025 will face many difficulties due to the return of Indian rice. The strong price fluctuations in the first days of the year clearly reflect the global supply and demand context, when India ended its export restrictions and is expected to harvest a bumper crop, pushing up rice supply in 2025. One of the main reasons for the decrease in Vietnam's rice export prices is also due to The Philippines, the largest import market, has temporarily suspended rice imports, awaiting the upcoming winter-spring crop.
On the other hand, Mr. Phung Duc Tien - Deputy Minister of Agriculture and Rural Development - affirmed that although India's reopening has caused difficulties for Vietnam's rice exports, the international export market is still wide open, and Indian rice cannot "suppress" Vietnamese rice. Mr. Tien affirmed that in In 2025, rice exports will still grow strongly, no less than in 2024.
In 2024, Vietnam's rice exports will reach 9.18 million tons, with a turnover of 5.75 billion USD; an increase of 12% in volume and 23% in value compared to 2023. The average export price of rice will reach 627 USD/ton, an increase of 9% compared to 2023.
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