AgriGuru News - Vietnamese Rice Sets Global Price Record Amid Market Fluctuations

The General Department of Customs reports that Vietnam exported over 751,000 tons of rice in July alone, generating revenues nearing $452 million. This represents a substantial increase of 46.3% in volume and 39.7% in value over the previous month.

From January to July 2024, Vietnam's total rice exports neared 5.3 million tons, valued at roughly $3.34 billion. This volume represents an 8.3% increase, with the value skyrocketing by 27.7% compared to the same period in 2023. The average export price now stands at $632 per ton, marking an 18.2% increase year-over-year.

Recent market analyses highlight a significant rebound in Vietnamese rice prices. As of August 15, the Vietnam Food Association (VFA) noted that Vietnam’s 5% broken rice traded at $575 per ton, out pricing Thailand by $14 per ton and Pakistan by $34 per ton. Additionally, the 25% broken rice variant is selling at $539 per ton, surpassing competitors by significant margins.

Vietnam now leads as the priciest among the world's top rice-exporting nations. Domestically, rice prices have seen a recovery in recent weeks, bolstering farmer incomes significantly.

The VFA indicates that Vietnamese rice export prices have reached unprecedented levels, with prices soaring to $959 per ton in markets such as Brunei, the United States, the Netherlands, Ukraine, Iraq, and Turkey. A global shortfall of approximately 7 million tons is expected this year, as some nations cut back on exports and others increase imports to bolster reserves. This dynamic offers a substantial opportunity for Vietnam, a leading rice exporter.

Demand remains robust in traditional markets like the Philippines, Indonesia, Ghana, Malaysia, and Singapore, and is expanding into new territories including the Middle East, Africa, South America, Japan, and South Korea. A recent tender in Indonesia, a significant importer of Vietnamese rice, saw local firms securing 7 out of 12 bids at an impressive $563 per ton, well above the average export price.

Experts anticipate that Vietnamese rice prices will maintain their high levels, driven by positive export market dynamics. The country’s rice export revenue is projected to hit $5 billion this year.

In response to market challenges and to secure the future of the rice sector, the Ministry of Agriculture and Rural Development alongside the Ministry of Industry and Trade are setting up a National Rice Council. This initiative aims to diversify rice products and markets, ensuring stable and lucrative returns for farmers.

The forthcoming National Rice Council will address critical trade issues, tackle branding challenges, and combat counterfeit Vietnamese rice in international markets.