The Vietnam Food Association (VFA) has cut the floor price of rice meant for export by USD20 per tonne.

Accordingly, the floor prices of 5 percent and 25 percent broken rice has dropped to USD480/tonne and USD460/tonne respectively.

This is the sixth adjustment for the floor price of exported rice since earlier this year.

Compared with January, such floor prices have fallen by USD40/ton (5 percent broken rice) and USD35/tonne (25 percent broken rice).

According to VFA, the floor price adjustment aims to help businesses be more flexible in negotiating rice export contracts.

Businesses are currently carrying out the program on buying and storing one million tons of rice to keep the domestic price of unhusked rice (meeting export standards, delivered at the rice mill’s warehouse) at not below VND5,000 (about 0.25 U.S. cents)/kg.

By March 10, Vietnam has exported 1.3 million tons of rice, earning more than USD627 million.