The Vietnam Food Association (VFA) has denied news reports that the association has cut its rice export forecast to 4.75 million tons for 2016 from 6.5 million tons.

VFA chairman Huynh The Nang said the news reports are inaccurate and that the association has revised down its rice export projection to six million tons this year.

Nang told the Daily that the adjustment resulted from weak demand of importing countries and limited rice supply on the domestic market due to the severe impact of the recent drought and saltwater intrusion, especially in the Mekong Delta, the country’s key rice producing region.

Pham Thanh Tho, deputy director of food at Loc Troi Group, said lackluster demand from traditional markets including Indonesia and the Philippines has resulted in lower-than-expected rice shipments this year.

Tho told the Daily that Indonesia’s rice in stock is still at safe levels while it takes time to know how much rice the Philippines needs to import. It is likely that the Philippines would import some 250,000 tons of rice in September or October to replenish its rice stock.

Nang of VFA said there has not been any clear sign that the Philippines will source 250,000 tons of rice from overseas in the coming months.

In its August report, the U.S. Department of Agriculture has projected Vietnam will ship abroad 6.4 million tons of rice this year.

A recent VFA report showed its member companies exported more than 270,560 tons of rice worth US$120 million in July, down 318,760 tons and over US$116 million compared to the same period last year. 

The respective numbers in the first seven months were roughly 2.93 million tons and almost US$1.27 billion, falling 373,000 tons and US$101 million year-on-year.

Despite the rice export decline, prices of paddy and rice on the local market have been stable in recent days, at VND4,450-4,550 per kilo for fresh IR 50404 paddy and VND6,600-6,700 per kilo for unprocessed IR 50404 rice.   

SGT