Cooling down, Vietnam's rice export prices remain very high

Specifically, the volume of rice exported in August reached 921 thousand tons, with a turnover of 546.4 million USD, a sharp increase of 39.5% in volume and 50.7% in turnover compared to the previous month.

In the first 8 months of the year, the total rice export volume reached more than 5.8 million tons, with a turnover of 3.16 billion USD, an increase of 21.4% in volume and 35.7% in turnover over the same period last year.

Hạ nhiệt, giá gạo xuất khẩu của Việt Nam vẫn neo ở mức rất cao

Vietnam's rice export prices are at a very high level.

According to the General Department of Customs, August was the month with the third highest rice export volume ever, while the average export value (reaching 593 USD/ton) was the highest since January 2022.

In the first 8 months of the year, ASEAN and China were the two main export markets of Vietnamese rice.

Of which, exports to ASEAN reached 3.49 million tons, up 27.6%; to the Chinese market reached 786 thousand tons, up 51% over the same period last year.

The amount of rice exported to the two markets mentioned above alone reached 4.28 million tons, accounting for 74% of the country's rice export volume.

According to the Vietnam Food Association (VFA), the export price of 5% broken rice is currently at 613-617 USD/ton and 25% broken rice is fluctuating around 598-602 USD/ton. Compared to the end of August 2023, this export price has decreased by about 22 USD to 30 USD/ton.

Notably, not only Vietnamese rice but also Thai and Pakistani rice exports also decreased to 611 USD/ton for 5% broken rice and 608 USD/ton for 25% broken rice.

The Vietnam Commodity Exchange (MXV) said that the signal of a gradually stabilizing supply is the main factor causing rice prices to cool down in the past two weeks.

The Indian government recently said that the export ban has helped the country ensure adequate supplies of essential food items such as rice and wheat. In addition, according to sources from the Bangladesh Food Ministry, the country has enough rice reserves, currently around 1.7 million tonnes, to supply its people amid rising global and domestic rice prices.

Major consuming countries have also been active in purchasing in the previous period to replenish necessary reserves of this essential food item. In Indonesia, the government increased rice imports in the first eight months of this year, as the government aims to replenish reserves of this essential item.

Statistics Indonesia reported that the country imported 1.59 million tons of rice in the first eight months of this year, a sharp increase from 237,146 tons in the same period last year. More than half of this was sourced from Thailand. Vietnam was the second largest rice supplier to Indonesia during the period, with 674,000 tons.

The Indonesian government has also assigned state food procurement agency Bulog to import 2.3 million tonnes of rice in 2023 to cope with the impact of El Nino, which has caused drought and crop damage in Asia. As of the end of August, imports had reached nearly 80% of the plan.

In less than a month, many rice-producing countries will also enter the peak harvest season, forecasting to provide a large supply to the market.

However, in the short and medium term, many consuming countries will still need to increase rice imports to replenish their reserves. This will be a factor to restrain the decline in rice prices.

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