Rice exports increase by 21.7%, reaching the target of 5 billion USD in 2024

According to the latest data from the Ministry of Agriculture and Rural Development, in the first 8 months of 2024, rice exports reached nearly 3.85 billion USD, up 21.7%; export output reached 6.16 million tons, up 5.9%. The average export price of rice in the 8 months reached 542 USD/ton, up 11.5% over the same period last year.

Rice export is very promising (Photo: Loc Troi Group)

The opportunity to increase rice exports is huge as the Indonesian Food Purchasing Company (Bulog) said that Indonesia wants to import an additional 900,000 tons of rice from now until the end of the year amid forecasts of lower output and delayed rice planting.

Rice suppliers to the Indonesian market this year include Thailand, Vietnam, Pakistan, Myanmar and Cambodia.

In the first half of 2024, Indonesia invited bids for an average of 300,000 tons of rice per month. Since July, Bulog has increased the bidding volume by 20,000 tons to 320,000 tons. However, the bidding results were not as expected, the country was only able to buy about 200,000 tons. This is the reason why the demand for rice in this market is increasing.

In the last July's bidding round of Bulog, Vietnamese enterprises won the most bids with 7/12 lots, reaching 185,000 tons, the winning bid price was 563 USD/ton. The remaining lots, Indonesia bought rice from Myanmar. Meanwhile, Thai enterprises were not interested in the Indonesian market as few enterprises participated in the bidding and the bid price was over 20 USD/ton higher than Vietnam's, Pakistani enterprises raised the bid price to 592 USD/ton.

In 2024, the Indonesian government plans to import up to 4.3 million tons of rice to ensure national food security. However, after favorable imports in the first 5 months of the year, with about 300,000 tons purchased each month, the country was unable to open bids in June due to congestion at seaports. In July, although Bulog increased its bidding output, due to the low price offered, the amount purchased was not enough.

Besides Indonesia, rice demand in many of Vietnam's main markets such as the Philippines, China... is also stable.

According to the Vietnam Food Association (VFA), the export price of 5% broken rice from Vietnam is currently the highest in the world, reaching 578 USD/ton; while Thai rice ranks second at 566 USD/ton and Pakistani rice ranks third at 539 USD/ton.

With such developments, it is forecasted that Vietnam's rice exports in 2024 will continue to flourish and may reach 5 billion USD due to limited supply in the world market, while import demand of many countries tends to increase.

Vietnam's rice exports in 2023 will reach more than 8.13 million tons, worth about 4.67 billion USD, the highest level in the history of Vietnam's rice industry since participating in exports (1989).

Source: https://congthuong.vn/xuat-khau-gao-tang-217-tran-tre-muc-tieu-dat-5-ty-usd-nam-2024-342846.html