Business
World has huge demand for Vietnam's rice
  • | dtinews.vn | September 22, 2010 12:03 PM

Despite difficulties in the domestic and international rice markets, Vietnam’s average rice export price is as high as larger rice exporting countries.

Vietnamese rice is highly evaluated in international markets (Illustrative photo)

At present, international markets have a huge demand of importing rice from Vietnam.

According to the Ministry of Agriculture & Rural Development, although floods, drought and epidemic diseases continue to occur, Vietnam’s rice production in 2010 is expected to meet its target of about 39 million tonnes.

Cuu Long Delta alone is expected to produce 21.3 million tonnes of rice this year. This output is about 400,000 tonnes higher than last year. This additional amount can make up for the decrease in the rice output of the North due to natural disaster.

The world’s rice markets in 2010 have fluctuated and been unpredictable. Early this year, rice export markets were not very busy because of expectations there would be an increase in supply. In addition, Thailand’s government plans to sell their stockpiled rice before a new harvest comes and India may resume its rice exporting activity.

Meanwhile, traditional rice importers from Vietnam, such as the Philippines and Indonesia, have not yet requested more rice. Nations in Africa have placed small orders as they want to cut down the price and have strict requirements on rice quality.

On June 30, 2010, the Prime Minister determined that 1 million tonnes of rice should be placed in a stockpile. This move has helped push up the selling price of rice for farmers.

From the end of July, 2010, the selling price started going up strongly because of the above mentioned decision and the fact that the exporting demand was boosted and natural disasters in big rice exporting countries such as China, Thailand, Pakistan, Russia and other Western European countries continued to occur.

In August, the government started to maintain exporting prices to extend the rice delivery progress to importers in line with the supplying ability of Vietnam.

According to the Ministry of Trade & Industry, from the beginning of this year to September 15, 2010, the total rice export volume of Vietnam has been 5,049,000 tonnes with an average price of USD 424.24 per tonne, or USD 16.64 higher than the same period last year. This volume is 5.86% higher than the same period last year.

According to the Deputy Minister of Trade & Industry, Nguyen Thanh Bien, the world’s food supply and demand development from now until early next year is quite complicated and unpredictable.

All relevant agencies and the Vietnam Food Association as well as exporting companies need to closely monitor information on rice production as well as supply and demand developments of rice in Vietnam and the world.

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