Meeting to discuss solutions for rice production and consumption

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.

Minister of Agriculture and Environment Do Duc Duy chaired the meeting. Also attending the meeting were Deputy Minister of Industry and Trade Nguyen Sinh Nhat Tan, Deputy Minister of Agriculture and Environment Tran Thanh Nam; representatives of the Departments and Divisions under the two Ministries; representatives of localities; representatives of associations and industries.

Vietnam's biggest rice harvest, the winter-spring crop, has begun and is expected to peak next month. Photo: Nguyen Hanh

According to the Ministry of Agriculture and Environment, the rice export volume in February 2025 is estimated at 560 thousand tons with a value of 288.2 million USD, bringing the total rice export volume and value in the first two 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, rice export value 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%.

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

In contrast to the previous year, domestic rice prices and export rice prices have continuously decreased from the end of 2024 to around the end of February 2025. The main reason for the current fall in export rice prices is that India has loosened its rice export restrictions after 2 years of tightening.

Supply increased due to India's return to the market. This increased supply in the international market, creating competitive pressure for other exporting countries, including Vietnam. When the market supply increases and demand decreases, they will use this pressure to put pressure on sellers.

Meanwhile, rice import demand from major markets such as the Philippines and Indonesia is also decreasing, as these countries have accumulated enough reserves in 2024 and are waiting for prices to fall further before re-importing.

Entering early March 2025, the export price of rice has increased slightly, however, the trend is still unclear. Some raw rice products have increased again, while the price of rice in the Mekong Delta region remains low compared to the same period last year.

The winter-spring rice harvest has begun and is expected to peak next month. Therefore, it is very important for the authorities to hold a meeting to discuss solutions to control prices and revive the current export price of rice.

During the years 2016 - 2022, the export price of 5% broken rice from Vietnam always fluctuated at 420 - 535 USD/ton. In 2023, the export price of rice increased sharply due to India's suspension of rice exports, causing the price of 5% broken rice from Vietnam to reach a 15-year high (since 2008) of 663 USD/ton in November 2023.

At this point, the export price of 5% broken rice stands at 393 USD/ton, down 270 USD, equivalent to 40% compared to the end of 2023. At the current price, the export price of 5% broken rice from Vietnam is at the lowest level among the world's leading exporting countries such as Thailand and India, only higher than Pakistan.

Source: https://congthuong.vn/hop-ban-giai-phap-san-xuat-va-tieu-thu-lua-gao-376631.html