Rice exports in Vietnam increase but prices fall

Vietnam exported some 4.08 million tons of rice in the first seven months of 2022 to obtain more than 1,990 million dollars, which represents an increase of 17.3% and 6%, respectively, compared to the same period of the year. previous year, according to customs data.

Despite the increase in export turnover, the average export price fell by 9.6% during the period, to USD 488.9 per tonne. Rice prices are not likely to increase in the near future as a result of low demand and abundant supply from major exporters.

Overall, the market is currently weak with low purchasing power, said Nguyen Van Don, Director of Viet Hung Co., Ltd, a food exporter based in Tien Giang province in the Mekong Delta. Since the beginning of the year, Vietnam has been exporting mainly to the Philippines, while shipments to China have decreased considerably.

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Exports to other markets, although stable, remained small, he continued, so the rice market is likely to remain stagnant until the end of the summer-autumn harvest.

Importers’ inventories are rising, so prices are unlikely to improve, said Do Ha Nam, vice president of the Vietnam Food Association (VFA). Meanwhile, the bumper harvest is forcing exporters to increase sales, he added.

Despite the increase in export turnover, the average export price fell by 9.6% during the period, to USD 488.9 per tonne

According to the VFA, 5% broken rice reached USD 393 per tonne and 25% broken rice USD 378 per tonne on 17 August. Prices were lower than those in Thailand, but higher than those in India and Pakistan.

The Philippines was the largest buyer of Vietnamese rice, with 48.6% of the total volume of exports and 46.6% of the total value in the seven-month period. It imported from Vietnam 1.98 million tons of rice, worth almost 924.9 million dollars, which represents a year-on-year increase of 67% and 40%, respectively.

It was followed by China, which accounted for more than 11.4% of the total volume and 12.2% of the total revenue. Exports to the neighboring country fell by 28% year-on-year, both in volume and value.

Nam anticipated that Vietnam will send abroad some 2 million tons of rice in the remaining months to lift the total volume of exports for the whole year to more than 6 million tons, worth about 3 billion dollars.

Article republished from the Vietnamese state media VNA as part of an agreement between both parties to share content. Link to original article: https://en.vietnamplus.vn/rice-exports-up-but-prices-down-in-seven-months/235912.vnp