Record rice prices, big profits for farmers in the West

The world's largest rice supplier, India, has banned exports, causing rice prices to increase day by day. Traders have deposited money in advance, and farmers in the West are excited because of high profits.

Summer-Autumn rice harvest in Dong Thap. Photo: Ngoc Tai

Last week, farmer Bui Van Phuoc in Tam Nong district, Dong Thap province harvested 7 hectares of OM 5451 rice variety, selling for 7,000 VND per kilogram. Because he signed a contract with a rice seed production company at the beginning of the season, he sold the rice at a price 400 VND per kilogram higher than the market price.

Mr. Phuoc was happy when the yield reached nearly 7 tons/ha, with a profit of about 200 million VND, an increase of 20% compared to the previous crop. "This is the first time selling summer-autumn rice has been more profitable than winter-spring rice. Traders this season buy a lot. When the rice is ripe, we cut it immediately, without any delay or bargaining," he said.

Although the rice has been sold, this farmer continues to receive calls from many traders asking to buy rice, with prices increasing every day, now up by 300-400 VND per kg. According to him, rice prices are as high as they were three years ago, while fertilizer prices have dropped sharply, making investment costs lower than before.

"A few years ago, I had to work hard to raise two children to go to college, but now I'm much better," the nearly 60-year-old farmer shared.

Farmer Nguyen Van Vuong in Dong Thap is happy because of a good rice crop and good prices. Photo: Ngoc Tai

Similarly in Can Tho , tens of thousands of hectares of autumn-winter rice in Thoi Lai, Co Do, and Vinh Thanh districts are in the ear-forming stage. Rice prices have been high since the beginning of the year and have been increasing continuously over the past few days, making many farmers very excited.

Mr. Nguyen Van Thanh in Trung Thanh commune, Co Do district, said that his family's 2 hectares of autumn-winter rice are currently blooming and will be harvested in about 40 days, with an expected yield of about 9 tons per hectare.

"The rice is still in bloom but traders have come to buy it," he said. Last weekend, traders asked to deposit to buy OM 5451 rice at 6,400-6,500 VND per kg. Meanwhile, yesterday morning, it had increased to 6,700 VND, and fragrant rice was 7,000 VND per kg. As for the long-grain rice of the previous winter-spring crop, traders were looking to buy it at 9,000 VND per kg.

Rice fields in Tri Ton district, An Giang province, is in the harvest season with the selling price of OM 5651 rice from 6,800 VND per kg, while OM 18 is from 7,050-7,100 VND per kg, an increase of about 500 VND compared to the previous crop. Mr. Nguyen Van Hao, Tan Tuyen commune, said that his family's 3 hectares of rice will be harvested next week but he is not in a hurry to receive a deposit to sell the rice, estimating that the price will continue to increase.

Rice and paddy gathering point of enterprises in Lap Vo district, Dong Thap. Photo: Ngoc Tai

Mr. Nguyen Van Tuan, owner of a rice processing factory for export in Thoi Lai district, Can Tho city, said that the export price of rice has increased by 15-20 USD per ton compared to last week, currently at 560-580 USD per ton. The price of rice is very high but the rice source in farmers' fields has been exhausted, with more than 80% of the summer-autumn rice area in the region harvested.

The factory owner is buying rice at 6,800-7,200 VND but supply cannot meet demand. The factory operates at full capacity and needs 500 tons of rice per day, but in 2-3 days it only gets about 100 tons. Mr. Tuan predicts: "India has stopped exporting rice and it is not yet time to harvest the autumn-winter crop, so rice prices are likely to remain high for the next 2-3 weeks."

According to Mr. Nguyen Van Don, Director of Viet Hung Company Limited based in Tien Giang, the price of summer-autumn rice this year is very beneficial for farmers as it has surpassed the price of winter-spring rice. In terms of quality, summer-autumn rice is usually lower so the selling price is always lower than the other two crops of the year, but this year it is the opposite.

The company leader assessed that most rice exporting enterprises are increasing their stockpiles as the harvest season begins, but are not in a hurry to sign new contracts with partners. "India's export ban, coupled with the impact of extreme weather, global food production is decreasing, but prices are difficult to predict in the near future. Most enterprises are still observing and not in a hurry," he said.

Figures from the Ministry of Agriculture and Rural Development show that rice exports in the first six months of 2023 reached 4.27 million tons with 2.3 billion USD, up 22.2% in volume and 34.7% in value over the same period in 2022.

The average export price of Vietnamese rice in the first six months of this year is estimated at 539 USD per ton, up 10.2% over the same period last year. Recently, Vietnamese rice has had the opportunity to increase prices and sign long-term contracts with partners when India - the world's largest supplier - banned the export of this commodity.

Mr. Le Quoc Dien, Deputy Director of the Department of Agriculture and Rural Development of Dong Thap province, said that to maintain the position of Vietnamese rice in the world market, localities need to improve quality with specialty rice varieties; guide farmers to reduce fertilizers and pesticides to reduce input costs and increase profits; link farmers and businesses...

The agricultural sector also recommends that people should not rush to plant the third rice crop in unfavorable areas with the risk of flooding. Instead, farmers should grow vegetables and raise aquatic products, which still bring high income and low risk.

Ngoc Tai - Huy Phong

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