The disruption of the production chain in the past few months is pushing rice exporting and processing companies into an increasingly difficult situation.

The export price of Vietnam’s 5% broken rice has fallen to US$385 per ton, down US$100 per ton against the same period last year and the lowest since February 2020, according to the Ministry of Agriculture and Rural Development. 

The year 2020 has been a challenging year for many business fields, but not for rice production and exports. Vietnam has surpassed India and Thailand in terms of rice export price.

The first batch of fragrant rice would be shipped to the EU under the EU-Vietnam Free Trade Agreement (EVFTA) by the end of this month, according to the Ministry of Agriculture and Rural Development.

With a bumper crop and good export prices, Vietnam’s rice export volume and turnover have exceeded Thailand’s, making the former the second largest exporter amid the Covid-19 crisis.

Vietnam has beaten Thailand to become the second biggest rice exporter in the world after the latter decided to slash rice exports due to prolonged drought and strong baht.

China’s rice imports from Vietnam plummeted during the first few months of 2019, pushing it off Vietnam’s top rice consumers list.

South Korea will provide 5 billion won (USD4.5 million) to help improve the rice quality in Vietnam’s Red River delta region.

Over the last 10 years, rice exports have brought $2-3 billion to Vietnam a year. However, they are facing difficulties in nearly all key markets this year.

 Indonesia plans to import one million tonnes of rice from Vietnam to meet the country’s high demand, according to Indonesian Ambassador to Vietnam Mayerfas.