Vietnam’s Rice Export Prices Soar Amidst Increased Global Demand

Xavier Roger
Vietnam's rice exports prices soar - Photo : Siebe Baarda

The average export price of rice from Vietnam experienced a substantial surge last year, reaching $650 per tonne, marking a significant 20.8 percent increase compared to the previous year. At the end of the past week, the export price of Vietnam’s five percent broken rice reached $513 per tonne, showing a sharp rise from the $500 to $510 per tonne range recorded in the first week of July. Similarly, the export price of 25 percent broken rice also saw an increase, reaching $493 per tonne.

Recent data from the General Department of Vietnam Customs revealed that during the first half of this year, Vietnam successfully exported over 4.2 million tonnes of rice, worth $2.26 billion. This represented a remarkable 21 percent increase in volume and an impressive 32 percent increase in value when compared to the same period last year. The average export price of rice in the past six months reached $539 per tonne, which demonstrated a remarkable 10 percent rise over the same period last year, and it touched the highest level in the past decade.

Particularly noteworthy was the month of June, where the average export price of rice reached $650 per tonne, showcasing an impressive 9.4 percent growth compared to the previous month and a notable 20.8 percent surge over the same period last year.

Vietnamese rice prices continue to ascend due to surging demand in international markets. Many countries worldwide are actively procuring rice to ensure food security, especially in light of the forecasted negative impact of the El Nino phenomenon on global agriculture.

In the first five months of this year, Vietnam’s rice exports to traditional markets such as the Philippines and China achieved double-digit gains. Additionally, rice exports to emerging markets such as Indonesia, Chile, Turkey, and Senegal experienced an astonishing increase ranging from 1,100 percent to an incredible 16,000 percent compared to the same period last year.

Furthermore, rice export prices in other Asian countries also witnessed a steady increase as demand escalated.

Amidst these developments, the market is closely monitoring India’s rice export policy. There have been reports that the Indian government is contemplating the imposition of a ban on the export of all non-Basmati rice. As India currently accounts for a significant 40 percent of total global rice exports, such a ban, if implemented, is likely to lead to a substantial rise in the world rice price. Simultaneously, this could create opportunities for other rice-exporting countries such as Vietnam and Thailand to increase their market share.

In light of the ever-changing global market dynamics and the potential impact of India’s export policy, Vietnam’s rice industry remains vigilant, seeking to capitalize on the increasing demand for rice in the international arena. As the nation continues to solidify its position as a key player in the global rice trade, it is expected that the upward momentum in rice export prices will persist in the foreseeable future.

Source : Vietnamnews

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