Currently, Vietnamese 5%, 25%, and 100% broken rice grains are being traded at US$396 and US$368 and US$317 per tonne, respectively.
Elsewhere, Thailand’s rice export prices of 5%, 25%, and 100% broken rice have dropped to its lowest level in more than three years to US$393, US$369, and US$336 per tonne, while India’s parboiled rice (5% broken) is now priced at US$387 per tonne, the lowest in nearly 22 months, and its 25% broken rice is valued at US$362 per tonne.
The fluctuations in rice prices from these leading rice-exporting countries are attributed to the US President Donald Trump’s decision to impose import taxes and the surplus supply in the global market. The US announced a 26% tariff on all goods exported from India and a 36% tax on products from Thailand.
Do Ha Nam, chairman of the VFA, analyzed that the main reason for the rapid increase in rice prices in Vietnam is due to the country's limited rice supply. Traditional customers continue to have a high and stable demand for Vietnamese rice.
"For markets that prefer high-quality rice like the US and Japan, we are still unable to export enough to meet the demand. To penetrate these markets, it is crucial to shift production towards sustainability and strictly control chemical residues," Nam emphasised.
According to the Ministry of Agriculture and Environment, although rice prices in March decreased, Vietnamese rice exports surged by 54.8% in volume and 48% in value compared to February with 1.08 million tonnes shipped abroad for more than US$530.5 million.
In the first three months of the year, the country shipped 2.3 million tonnes of rice abroad, grossing US$1.21 billion.
The Philippines is Vietnam's largest rice importer, accounting for 42.7% of the total export volume and 40.6% of the total export value, with 985,941 tonnes worth nearly US$488.7 million.
It is followed by the Ivory Coast with 293,296 tonnes, equivalent to US$143.4 million, and China with 232,136 tonnes worth US$115.6 million.
According to economic experts, the demand for rice imports from these markets is expected to remain high this year, providing a stable outlet for major rice-exporting countries like Vietnam. It is anticipated that the Philippines will import around 4.9 million tonnes, or even over 5 million tonnes.
Nam noted that Vietnam’s rice exports are relatively less impacted by the tariffs due to the small volume of rice shipped to the US Furthermore, high-quality fragrance rice varieties like ST25, with low production but strong demand, are selling well in international markets.
In the context of the current volatile and fiercely competitive rice market, Vietnam needs to continue to improve its quality whilst diversifying rice products in an effort to create a difference in the global market, he stressed.
