In the context of falling domestic and export rice prices, in addition to recommendations to support access to capital, VFA proposed to issue regulations on floor prices for rice exports.
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 of the two Ministries; representatives of localities; representatives of associations and industries.
Rice export prices decrease in many countries
Sharing at the meeting, Mr. Ngo Hong Phong - Director of the Department of Quality, Processing and Market Development (Ministry of Agriculture and Environment) - informed that in 2025, the total cultivated area is expected to be about 7.03 million hectares, the yield is estimated at 61.6 quintals/ha, the output is estimated at 43.14 million tons (a decrease of 323 thousand tons compared to 2024).
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| Export rice prices in early February 2025 fell to their lowest level in 9 years. Illustrative photo |
Estimated production for the whole year in the Mekong Delta region is 3.8 million hectares, with an average yield of 63.09 quintals/hectare and an estimated output of 24.057 million tons. The total amount of rice for export in the first 6 months is estimated at 4.53 million tons; the total amount of rice for export in the last 6 months is estimated at 3.012 million tons.
Regarding the world rice situation, according to the United States Department of Agriculture (USDA), the forecast for February 2025 is that global rice production is expected to reach 532.7 million tons, a record high, but slightly down from the previous forecast. The total global rice supply is expected to reach 712.15 million tons, 9.2 million tons higher than the previous year. Global consumption is estimated at 530.5 million tons, up from the previous year, mainly due to China and Indonesia. Ending inventory is forecast to reach 181.6 million tons, down slightly but still higher than the previous year.
Rice trade in 2025 is expected to reach 58.5 million tons, up 450 tons from the previous forecast but lower than in 2024. India and Kazakhstan will increase exports, while Argentina and the US will lower their forecasts. Imports will increase in China, the EU, Japan, Sri Lanka, the US, etc.
“In the first two months of 2025, rice prices decreased globally. Specifically, Thai rice decreased by 10-11%; Vietnamese rice decreased by 6%... High output continues to put downward pressure on prices, however, import demand from China and Indonesia can support the market,” Mr. Ngo Hong Phong shared.
Proposal to set floor price for rice export
At the meeting, delegates also shared the same opinion that the reason for the recent sharp decline in rice prices was due to increased supply and decreased demand. In addition, India resumed exports, pushing supply into the market, putting great pressure on rice prices. Global supply is surplus, production is increasing in India, Vietnam, Thailand, and Pakistan.
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| 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 |
Import markets such as the Philippines and Indonesia have already stocked up, waiting for rice prices to continue to fall, and continue to squeeze prices. In addition, another reason that needs to be mentioned is that Vietnam's rice production, purchasing, processing and export chain is currently unsustainable.
From a local perspective, Mr. Ngo Cong Thuc - Vice Chairman of An Giang Provincial People's Committee - said that in 2024, the province exported 587,000 tons of rice, equivalent to 340 million USD. In the first 2 months of 2025, An Giang exported 29,900 tons of rice, equivalent to 15.2 million USD.
Given the current rice situation, Mr. Ngo Cong Thuc proposed that the Government, ministries and central branches continue to support provinces in the Mekong Delta by inviting corporations and businesses to invest in agricultural production linkages, helping to form a stable production and consumption chain.
At the same time, there should be more preferential policies to encourage businesses to boldly invest in agriculture and rural areas so that signing and exporting with foreign partners can be stable, helping agricultural production activities develop sustainably.
Along with that, An Giang also proposed that the Vietnam Rice Industry Association connect rice processing enterprises to build rice material areas in An Giang to ensure stability in quantity and quality, meeting the export processing needs of enterprises...
On the association and industry side, Vice President of the Vietnam Food Association (VFA) Do Ha Nam proposed that the State Bank consider creating conditions for people and businesses to access capital and have the ability to store goods, thereby being more proactive in terms of commodity prices. Increase the limit for exporting enterprises and rice suppliers, extend the loan period for rice purchases so that they can sell to markets at better prices as well as extend the storage period, avoiding the situation of massive sales. In addition, propose to keep the loan interest rate for rice exporting enterprises at the lowest possible level.
In addition, VFA proposed that the Ministry of Industry and Trade issue regulations on the floor price for rice exports according to Decree 107/2018/ND-CP with the price proposed by the Vietnam Food Association at 500 USD/ton (FOB price). At the same time, strengthen inspection of rice exporting enterprises, especially enterprises that only purchase but do not participate in the processing stage, or enterprises that only participate in trade but do not participate in the export market.
Strengthen market monitoring, expand exports
Taking note of the opinions at the meeting, Deputy Minister of Industry and Trade Nguyen Sinh Nhat Tan said that 2024 will see great success in rice export activities with a record output of over 9 million tons, and the export price of rice will also reach its highest level ever.
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| Deputy Minister of Industry and Trade Nguyen Sinh Nhat Tan shared at a meeting about the production and consumption of rice in the Mekong Delta. Photo: Nguyen Hanh |
However, right at the end of 2024, the export price trend of rice has been adjusted and adjusted very strongly. Entering the beginning of 2025, exports have begun to slow down and prices have decreased.
In the story of rice export, the search for new markets in addition to maintaining traditional markets has been implemented and this needs to be further promoted. Along with that is the adjustment of rice structure and types. In particular, focusing on rice quality is an issue that needs to be noted.
According to Deputy Minister Nguyen Sinh Nhat Tan, we have also made major changes in controlling exports associated with processing and manufacturing. This has been implemented in 2024 and is expected to have a clear change in 2025. For this activity, the coordinating role of the Ministry of Agriculture and Environment as well as the participation of associations, businesses, and industries is extremely important.
The Ministry of Industry and Trade will acknowledge and accept recommendations from associations, industries, and localities, including the implementation of Decree 107/2018/ND-CP on rice export business. It is expected that there will be a conference on rice export in the near future.
Regarding the story of activating the floor price, the Ministry of Industry and Trade is studying. However, the Ministry of Industry and Trade is also considering activating reserves to ensure stabilization. The Ministry of Industry and Trade will coordinate with relevant units to check this. This is also one of the solutions contributing to stabilizing rice prices. At the same time, the Ministry of Industry and Trade will continue to promote negotiations to open new markets in addition to traditional markets to ensure sustainable rice exports in the long term.
Will submit to the Government to issue a telegram on rice management
Speaking at the conference, Minister of Agriculture and Environment Do Duc Duy affirmed: In the first two months of the year, the world rice market situation has fluctuated a lot, especially after India lifted the ban on rice exports and started exporting again in September 2024.
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| Minister of Agriculture and Environment Do Duc Duy speaks at the meeting. Photo: Nguyen Hanh |
Through monitoring and evaluation by authorities as well as industry associations, it is shown that the reason for the decrease in rice prices is the imbalance between supply and demand in the world market. In particular, supply has increased sharply, demand has increased but has not kept up with the increase in supply, leading to many difficulties in Vietnam's rice exports. Especially, prices have decreased sharply compared to 2024.
This issue also affects the domestic market, especially when we are entering the main winter-spring crop season in the Mekong Delta, with large output.
“In that situation, the Ministry of Agriculture and Environment organized a conference with representatives of relevant ministries and leaders of localities, associations, industries, and key enterprises to identify and correctly assess the situation,” Mr. Do Duc Duy shared.
In this difficult general context, Minister of Agriculture and Environment Do Duc Duy said that we must re-determine the extent and the causes, both domestically and internationally, to propose solutions to stabilize and stabilize the rice market, including both short-term and long-term solutions.
Acknowledging the opinions of ministries, branches, localities and associations, Minister Do Duc Duy said that after this conference, the Ministry of Agriculture and Environment will synthesize information, develop and submit to the Government a dispatch on management to ensure balance of rice supply and demand in the face of developments in the world and domestic markets. It is expected that the report will be completed this afternoon or tomorrow.
In 2024, Vietnam's rice exports will reach a record 9.18 million tons with a turnover of 5.75 billion USD, up 12.9% in volume and 23% in value compared to 2023. 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. |
Source: https://congthuong.vn/vfa-de-xuat-dua-ra-quy-dinh-gia-san-xuat-khau-gao-376697.html
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