Source: Vneconomy.vn
According to data from the Ministry of Agriculture and Rural Development, Vietnam’s rice exports in the first 9 months of 2024 will reach 7 million tons, with a value of 4.37 billion USD, an increase of 9.2% in volume and an increase of 23.5%. in value compared to the same period last year. The average rice export price reached 624 USD/ton, up 13.1% over the same period in 2023.
VIETNAM IS DOMINATING THE PREMIUM RICE SEGMENT
On the world market, India’s export ban on non-basmati white rice – a famous specialty rice of India and the South Asian region – from July 20, 2023 has had a profound impact on the world. global rice export prices over the past year, pushing prices to the highest level in 15 years. Despite the ban, according to data from the Indian Ministry of Commerce, after 9 months of 2024, India is still the number one rice exporter in the world, with nearly 10.9 million tons; The second position belongs to Vietnam and Thailand, both at 7 million tons.
On September 28, 2024, the Government of India suspended the rice export ban on milled rice other than basmati rice, ending a ban that lasted more than 14 months. At the same time, this country also reduced the export tax on brown rice and parboiled rice from 20% to 10%. India’s decision comes as the country’s rice harvest in 2024 increases higher, bolsters state reserves to meet domestic demand and farmers prepare to harvest new crops in the coming months. next few weeks.
Commenting on how India’s lifting of the ordinary rice export order affects Vietnam’s rice exports, Deputy Minister of Agriculture and Rural Development Phung Duc Tien said: Vietnamese rice has been taking over. dominates the market in the high-end segment, high quality rice, high selling price, while Indian rice is in the cheaper segment so “river water does not violate well water”.
“Vietnam’s rice is mainly exported to countries in the Asian region such as the Philippines, Indonesia, Malaysia, China, and Singapore; Meanwhile, Indian rice is mainly exported to countries in Africa and the Middle East. It can be seen that the rice export markets and segments of Vietnam and India are very different,” Deputy Minister Phung Duc Tien shared.
According to the Vietnam Food Association, the return of ordinary Indian rice to the market will put downward pressure on common rice varieties, such as Vietnam’s 5% and 25% broken rice. However, Vietnam’s export rice price is unlikely to fall below 500 USD/ton because domestic supply is not abundant.
Mr. Do Ha Nam, Vice President of the Vietnam Food Association, said that Indian rice varieties are different from Vietnam’s. Indian rice is mainly low-grade rice and exported to the African market. In Vietnam, most of the area has been converted by farmers to growing high quality rice varieties. Although prices have decreased, demand from Vietnam’s main markets such as the Philippines, Indonesia and Malaysia remains high.
STILL MAINTAINING THE TARGET OF EXPORTING 9 MILLION TONS OF RICE
The Indian Government’s lifting of the ban on exporting ordinary rice immediately had an impact on reducing world rice export prices in October 2024. As of October 18, 2024, the price of Indian 5% broken parboiled rice was offered at 490 – 495 USD/ton, the lowest level since August 24, 2023.
According to the Vietnam Food Association (VFA), the price of Vietnam’s 5% broken rice on October 18, 2024 is 534 USD/ton, down 24 USD compared to the end of last month; 25% broken rice is at 506 USD/ton and 100% broken rice is at 439 USD/ton, down 20-25 USD/ton compared to the end of last month. Similarly, Thailand’s rice price also decreased to about 518 USD/ton, down 22 USD/ton compared to last month and this is the lowest price in more than a year. Thus, at the present time, the export price of Vietnam’s 5% broken rice is 16 USD/ton higher than rice of the same type from Thailand and 46 USD/ton higher than rice of the same type from India. Rice export prices from other countries have dropped sharply and some have dropped below $500/ton for the first time since July 2023.
In contrast to export rice prices, domestic raw rice prices have increased, putting pressure on rice purchasing and exporting businesses. According to the agricultural product price survey system of the Ministry of Agriculture and Rural Development, the price of common domestic white rice on October 22, 2024 increased by 500 VND/kg compared to October 15, 2024. In the Mekong Delta region, the price of IR 504 Summer-Autumn raw rice currently fluctuates at 10,500 – 10,700 VND/kg; IR 504 finished rice costs 12,600 – 12,750 VND/kg.
Explaining the reason why domestic rice prices are moving in the opposite direction compared to world rice prices, the Ministry of Agriculture and Rural Development said that due to the impact of storms and floods in September 2024, hundreds of hectares of rice in the North were affected. affected, leading to a decrease in domestic rice supply. In the last 2 months of the year, rice supply is no longer abundant, so some export businesses have to increase rice imports from neighboring countries to pay export orders in the last months of the year.
In fact, in recent years, Vietnamese businesses have increased the import of low-grade rice to serve domestic consumption needs, saving the amount of high-quality domestic rice for export. In 2023, Vietnamese businesses will spend 860 million USD to import rice to serve the needs of processing vermicelli, pho and cakes…
