(PLVN) - Export rice prices have fallen to their lowest level in several years. This will have a strong impact on the domestic rice market. To "stop" the decline in export rice prices, a series of actions have been taken by the authorities.
Rice export prices hit multi-year low
In contrast to the previous year, domestic rice prices and export rice prices from the end of 2024 to around the end of February 2025 have continuously decreased. According to data from the Vietnam Food Association (VFA), the export price of 100% broken rice from Vietnam on March 10, 2025 remained at 307 USD/ton as two days earlier, while in early March, the price of this type of rice was only 3 USD/ton higher, at 310 USD/ton. With this price and the continuous price reduction since the beginning of March, Vietnam's rice export price is very low compared to other markets. Notably, data from the Ministry of Agriculture and Environment shows that 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.
This has been assessed as the period when rice export prices have dropped to the lowest level in many years. Because the period 2020 - 2022 also saw an equivalent export price. And in 2023, when India issued a new ban on rice exports, the price of rice exports on the world market fluctuated strongly, increasing very high, from 38 - 45% and Vietnam also benefited from this ban on rice exports.
Therefore, India's gradual relaxation of rice export restrictions after 2 years of tightening since the end of last year and recently allowing the resumption of 100% broken rice exports is one of the reasons for the low rice export prices. Before restricting exports, India was the world's largest rice export market. Therefore, when India resumes exports, the market supply will be very abundant, causing rice exports in the world market to return to the price of 2022.
A director of a rice exporting enterprise commented that if rice exporting enterprises continue to "race" with world prices during this period, they will suffer many losses, because according to forecasts, the rice supply in the world market during this period is quite abundant.
Mr. Do Ha Nam - Vice President of VFA said that the sharp decrease in export rice prices has led to very low rice purchasing prices for farmers. This has not only caused difficulties for farmers but also severely affected export enterprises.
Providing capital for rice storage
Faced with the fact that domestic and export rice prices are falling sharply, VFA has proposed that the Ministry of Industry and Trade activate the floor price for exported rice according to Decree 107/2018/ND-CP, with the proposed price being 500 USD/ton. According to VFA, this proposal aims to prevent unfair price competition, ensure the value of Vietnamese rice and protect the interests of farmers. In particular, in the context of a sharp decline in export rice prices due to competition from other countries, especially India, applying a floor price will help prevent the purchase price of rice from farmers from decreasing accordingly. In addition, VFA has proposed that the State Bank of Vietnam (SBV) provide a low-interest credit package and extend the loan period for businesses to store rice and take the initiative in selling prices instead of selling raw rice en masse.
Deputy Minister of Industry and Trade Nguyen Sinh Nhat Tan said that the Ministry of Industry and Trade is studying the story of activating floor prices to stabilize rice prices, along with a number of other solutions such as promoting negotiations and finding new markets for exported rice.
In the immediate future, the Ministry of Industry and Trade has proposed a number of key solutions to support rice exporting enterprises and farmers, such as organizing trade promotion delegations in traditional rice exporting markets (such as the Philippines,
Indonesia, China), as well as potential. In particular, the Australian market is being recommended by the Vietnam Trade Office in Australia to promote agricultural exports during this period, especially rice when the price of rice exported to Australia is still maintaining a good price and the export value increased by an average of more than 12.3% in January compared to the same period in 2024.
The State Bank of Vietnam has also issued an official dispatch requesting commercial banks and branches of the State Bank of Vietnam in the Mekong Delta provinces to proactively balance capital sources and promptly meet the loan needs of people and enterprises producing, processing, purchasing, storing, and consuming (domestic and export) rice in 2025, especially purchasing winter-spring rice in the provinces and cities in the Mekong Delta; Create favorable conditions to support farmers in re-cropping. Do not let people and enterprises with effective production and business plans that fully comply with legal regulations not access or have slow access to loans due to cumbersome conditions and procedures.
In addition, it is necessary to study and consider increasing the loan limit and term in accordance with the provisions of law for enterprises with capacity and experience in organizing purchasing, processing, exporting, and having a warehouse system to purchase rice for temporary storage; creating conditions for expanding medium and long-term credit to support investment in warehouses, machinery, processing, preservation and temporary storage equipment.
Source: https://baophapluat.vn/loat-dong-thai-nham-dung-da-giam-cua-gia-xuat-khau-gao-post541997.html
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