Though the Mekong Delta has begun entering the harvest season of the winter-spring crop, rice prices have plunged to their lowest since last year’s summer-autumn crop.
Sliding paddy prices have sparked anxiety among rice farmers. Those financially capable can store their commodity in anticipation of better prices but others have no choice but to sell it at reduced prices.

Negative signs about rice export since early 2012, coupled with the rising supply at harvest time, have dragged down prices of local paddy and commercial rice.

In Dong Thap, Vinh Long and Long An, where the winter-spring crop is being harvested, the fresh low-grade paddy IR 50404 is being bought at VND4,100-4,300 per kilo, while the dried IR 50404 type has dipped to a record low of VND5,100-5,300 a kilo.

Each kilo of commercial rice has shrunk by VND2,700-3,000 compared to the record high.

Meanwhile, traders are seeking to buy the high-grade OM 4900 at a very high price, VND6,700-6,800 a kilo for the fresh one a few days ago, as they have been told about a possible surge in export demand for this kind of rice. However, the high-grade paddy now sees its price falling in line with the low-grade category, hovering in the VND6,100-6,200 per kilo range, down by VND500-600.

A trader named Duong Van Men in Lap Vo District, Dong Thap said: “The strong decline in low-grade rice prices has fueled anxiety, pulling down high-quality rice prices.”

The Vietnam Food Association (VFA) said on its website that the material rice used for producing 5% broken type is now priced at VND7,550-7,650 per kilo and that for the 25% broken at VND7,400-7,500 a kilo. However, food trading enterprises in Tien Giang are buying it at a price that is VND100-150 lower.

The price of the finished 5% broken rice is VND8,700-8,800 a kilo, VND8,200-8,250 for 15% broken and VND7,850-7,900 for 25% broken.

Due to the downward spiral of rice prices, traders have racked up losses while farmers are struggling to secure funding for their next crop.

Hoang Van Thinh in Long Ho District, Long An said his family had one hectare of paddy IR 50404 this winter-spring crop. After harvest, he decided to sell all the fresh produce on the spot at VND4,150 per kilo.

Regardless of the low prices, Thinh had to sell his rice; otherwise, his suppliers of fertilizers and pesticides would cut ties in the next crop, he said.

Similarly, farmer Nguyen Van Hao in Long An has been forced to sell the fresh paddy IR 50404 at VND4,100 a kilo to recover capital for fertilizer and pesticide payments, and for next crop’s cultivation.

However, financially capable farming households have chosen to store their rice to bet on a price recovery.

SGT