Export prices reverse, Vietnamese rice loses "throne" to Pakistan

Concerns about the sharp drop in rice prices. Reasons for the shocking increase in world rice prices, while Vietnamese rice prices continue to decrease.

Update on February 22 from the Vietnam Food Association (VFA) shows that world rice export prices continued to have a sharp decrease on February 22.

Rice export prices continue to fall sharply

Accordingly, the price of Vietnam's 5% broken rice has dropped by a record 19 USD, falling to 609 USD/ton. The prices of Thai and Pakistani rice have also decreased, but not significantly. Specifically, Thailand's 5% broken rice has decreased by 3 USD, down to 611 USD/ton; the same grade of Pakistani rice has decreased by 1 USD, down to 612 USD/ton.

With the above reduction, the price of 5% broken rice from Pakistan unexpectedly holds the top position in the world, being 1 USD/ton higher than Thailand and 3 USD/ton higher than Vietnam. This is also the first time that the price of rice from this country is higher than that of Thailand and Vietnam.

Similarly, the 25% broken rice segment also saw a sharp decrease, with Vietnamese rice falling by 20 USD to 584 USD/ton; Thai rice falling by 2 USD to 561 USD/ton; and Pakistani rice falling by 5 USD to 570 USD/ton.

In the 100% broken rice segment, while Vietnamese rice maintained the price of 508 USD/ton, Thai rice suddenly increased sharply by 19 USD/ton, reaching 483 USD/ton; Pakistani rice adjusted up slightly by 1 USD/ton to 465 USD/ton.

Explaining the reason for the decrease in rice prices, businesses said that Indonesia is preparing to enter Ramadan and had previously "finalized" a 500,000-ton contract at the end of January, mainly with Vietnam, and recently about 230,000 tons with Thailand. Thanks to that, this major customer has increased the total rice supply for people to ensure until the end of April. In addition, Vietnam is entering the winter-spring rice harvest, causing many importers to reduce the pressure to buy and continue to wait for good prices. In addition, unpredictable factors from India also affect the purchasing psychology of importers.

The continuous sharp decline in export rice prices in recent trading sessions has had a strong impact on domestic prices. Accordingly, rice prices have continuously decreased in recent days, causing the situation of deposit abandonment to occur in many places in the provinces of the Mekong Delta.

According to the Department of Agriculture and Rural Development of An Giang province on February 22, the price of fresh IR 50404 rice purchased by traders at the field decreased by 1,100 VND, to 7,100-7,300 VND/kg; Dai Thom 8 rice decreased by 1,000 VND, to 7,400-7,600 VND/kg; Long An fresh sticky rice decreased by 500 VND, to 7,500-7,600 VND/kg...

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