Dr. Nguyen Minh Phong: Take advantage of rice export opportunities, but need to stabilize the domestic market

Data from the Vietnam Commodity Exchange (MXV) shows that in the week from August 14 to August 20, the price of rough rice futures for September listed on the Chicago Board of Trade decreased by 2.78%, down to nearly 306 USD/ton.

In Vietnam, one month after India banned rice exports, on August 19, the export price of 5% broken rice from Vietnam was at 628 USD/ton, while the same type of Thai rice was at 618 USD/ton. The price of 25% broken rice from Vietnam was 618 USD/ton, while the same type of Thai rice was at 561 USD/ton.

Thus, the price of 5% broken rice from Vietnam is 10 USD/ton higher than that of Thailand, while the price of 25% broken rice from Vietnam is 57 USD/ton higher. The export price of Vietnamese rice is currently the highest in the world.

Apart from the standard 5% broken rice, the prices of fragrant rice, high-quality rice and 25% broken rice of both major exporting countries all decreased by 10-20 USD/ton, but remained high.

In the domestic market, according to the Vietnam Food Association, the highest price of regular rice at the field last week was 7,900 VND/kg, the average price was 7,850 VND/kg, an increase of 64 VND/kg. However, the price of regular rice at the warehouse decreased by an average of 333 VND/kg, to 9,083 VND/kg; the highest price was 9,500 VND/kg.

Tạo điều kiện thuận lợi cho hoạt động xuất khẩu gạo

High rice prices create favorable conditions for export activities.

Prices of rice products also decreased. 5% broken rice had the highest price of 14,600 VND/kg, the average price was 14,486 VND/kg, down 148 VND/kg. 15% broken rice had the highest price of 14,400 VND/kg, the average price was 14,208 VND/kg, down 142 VND/kg. 25% broken rice had the highest price of 14,200 VND/kg, the average price was 13,892 VND/kg, down 142 VND/kg.

Update from localities in the Mekong Delta region as of 11:00 a.m. this morning (August 22), domestic rice prices remain stable as at the end of the week.

Talking to reporters of Cong Thuong Newspaper about the current rice price issue, Dr. Nguyen Minh Phong - Economic expert said that the fact that Vietnam's rice price is currently the most expensive in the world has two points that are both encouraging and worrying.

According to Dr. Nguyen Minh Phong, the good news is that Vietnam's rice this year has both a good harvest and good prices, with export volume increasing by 25% but the value reaching 36%. "This shows that Vietnam is on the right track and at the right time in the context of the world's declining supply and pressure on food shortages. Therefore, the current rice price helps farmers earn more income and makes us more confident in our food production orientation," Dr. Phong analyzed.

Besides, the concern is that if there is no more reserve in the warehouse, it will affect the country's food security. And the next crop season, how it will develop is unpredictable.

“Therefore, the task of the Government and the Ministry of Industry and Trade is to manage exports, especially rice exports, well. In addition, it is necessary to forecast the next year's output appropriately. On the part of the Ministry of Agriculture and Rural Development, one of the most important things is to continue to support farmers in converting varieties and improving product quality to increase selling prices as we are doing now,” the economic expert recommended.

TS. Nguyễn Minh Phong: Tận dụng cơ hội xuất khẩu gạo, nhưng cần bình ổn thị trường trong nước

Dr. Nguyen Minh Phong: Take advantage of rice export opportunities, but need to stabilize the domestic market

Assessing the recent directions and management of the state management agency on rice, Dr. Nguyen Minh Phong said that the recent directions of the Ministry of Industry and Trade were appropriate, wise and careful. However, the Ministry of Industry and Trade needs to coordinate with the Ministry of Agriculture and Rural Development and other ministries and branches, because the Ministry of Industry and Trade currently only manages import and export, while the issue of cultivation and next year's output and national reserves are the tasks of many other ministries and branches.

“The Ministry of Industry and Trade must carefully consider increasing prices according to world prices, because if prices are increased according to world prices, it is objective, but increasing prices for speculation needs to be clearly distinguished. People still have the right to increase prices, because if they do not increase according to world prices, foreign traders will come to Vietnam to buy at low prices and bring them back to the country to export at high prices, then people will suffer,” said Dr. Nguyen Minh Phong, and at the same time recommended: “This issue must be paid close attention to, avoiding the extreme of not increasing prices, but must be balanced with world prices to suit the interests of farmers in the current context, avoiding the case where the benefits from increasing world prices fall into the hands of foreigners.”

The expert also said that in the coming time, Vietnam needs to maintain stable domestic prices by using price stabilization tools. This is a program that the Ministry of Industry and Trade has been doing for many years and has experience in, while exports must follow world prices.

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