Source: congthuong.vn
Good news from new contracts and signing minutes
From the beginning of 2024 until the holidays Lunar New Year Giap Thin, many good news came to our country’s rice growers when many contracts and memoranda of understanding on rice export were signed.
First, 7 Vietnamese enterprises won 10/17 bidding packages, supplying over 300,000 tons of rice to Indonesia. These are rice export contracts opening for the new year of Giap Thin. With this contract, rice growers in the Mekong Delta provinces have great motivation to start the Winter-Spring harvest. It is expected that these goods will be delivered to Indonesia right after the Lunar New Year. Most notably, Indonesia is planning to continue importing 2 million tons of rice in 2024.
In addition, the Ministry of Agriculture and Rural Development said that in 2024, Korea may organize 9 bid openings to import rice from a number of countries around the world, depending on the domestic supply situation. Of which, this country gives Vietnam a total quota of 55,112 tons. Korea’s early announcement of rice import quotas will help Vietnamese businesses be more proactive, and have the opportunity to promote high-quality rice to the Korean market this year.
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| Farmers in the Mekong Delta expect a bumper harvest |
At the same time, in the early days of February, Vietnam also signed a memorandum of understanding to sell 1.5 – 2 million tons of rice/year to the Philippines for 5 years. The Philippines is the world’s leading rice importer in 2024 when it announced a record import demand of 3.8 million tons of rice/year. Currently, Vietnamese rice accounts for over 80% of the total rice imports in this country’s rice import market.
With that, a business rice export of Vietnam, Viet Hung Co., Ltd. recently announced the good news that it is receiving many orders from Philippine partners right from the beginning of the year.
Global rice demand remains very high
According to the announcement of the US Department of Agriculture, in January 2024, the worldwide rice consumption demand in 2024 is 522.1 million tons. This number far exceeds the planned output of 513.5 million tons.
These announcements do not take into account adverse factors of climate and weather… so if production is under optimal conditions as planned, the global rice output shortage is likely to still occur. Meanwhile, India – which supplies more than 40% of the world’s rice exports – has so far shown no signs of reopening. This is a great opportunity for rice suppliers to boost exports, including Vietnam.
Previously, the “Global Commodity Outlook” Report published by the World Bank also commented: Global rice prices are not expected to decrease (significantly) before 2025 due to export restrictions from major producing countries. and the lingering threat of the El Nino phenomenon. Specifically, agricultural product prices are forecast to decrease by 7% in 2023 and an additional 2% in 2024 and 2025 thanks to abundant supply. However, on the contrary, rice prices still increase. The average global rice price in 2023 is 28% higher than in 2022 and is expected to increase by 6% in 2024. Caused by the threat from El Nino and policies restricting exports from major sources as well as increased imports from countries with high demand.
Facing forecasts that rice prices will remain high in 2024, a representative of the Department of Crop Production, Ministry of Agriculture and Rural Development said that although the rice area tends to decrease, the production plan for 2024, the crop industry Still aiming to maintain rice cultivation area at 7.1 million hectares, rice output over 43 million tons; ensure export of 8 million tons of rice or more.
In fact, in 2023, the global food market will experience unusual fluctuations, including adverse weather conditions that reduce output, India banning rice exports… But with flexible and reasonable management by the Government , Vietnam has taken advantage of a great opportunity to supply rice to the whole world, helping to increase farmers’ income.
And in the first days of Giap Thin New Year, the opportunity to increase the value of Vietnamese rice is right before our eyes. Rice growers across the country continue to expect the right decisions so that 2024 will continue to be a year of growth and breakthrough in rice export, thereby helping farmers increase their income.
