Rice exports see dropping prices due to declining demand

Vietnam’s rice export sector is seeing lower prices because of falling demand from major markets like China and the Philippines.

Vietnam’s rice export sector is seeing lower prices because of falling demand from major markets like China and the Philippines.

 

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The rice prices in the spring-winter crop in the Mekong Delta dropped by VND300 to VND600 per kilo, to VND5,400 (23 US cents) to VND6,500 per kilo. The prices of high-quality rice in Bac Lieu Province have dropped by VND5,100 to VND4,700 per kilo.

In the first two months, the amount of exported rice reached 837,000 tonnes, an increase of 1.1% compared to the same period last year. However, the value decreased by 10.4% to USD364m. The rice prices in January stayed at USD446 per tonne, decreased by 8.2% compared to the previous year.

Rice prices continue to fall because major markets like China and the Philippines haven't announced any import plans for 2019.

Nguyen Quoc Toan, head of Department of Farm Produce Processing and Market Development, said, "The Philippines and Indonesia already imported a huge amount of rice last year and do not have any more import plans. Malaysia is planning to increase rice production by 5% to be less dependent on imports."

It is forecasted that rice exports will continue to face difficulties in March since the Philippines and Indonesia currently don’t have any import plans for 2019.

The Ministry of Agriculture and Rural Development has asked the Ministry of Finance to buy 280,000 tonnes of rice to the national reserve. The prime minister has also asked firms to quickly carry out signed contracts to export 200,000 tonnes or rice to the Philippines and 100,000 tonnes to China this year.