Vietnam faces a dilemma following its shift to high-quality rice exports, as the demand from importing markets for low- and medium-quality white rice is still running high, said attendees at a seminar on rice production and export on November 2 in Can Tho City.

Rice from enterprises as members of the Vietnam Food Association are on display at a fair in Can Tho City

According to a report by Tran Thanh Hai, deputy director of the Import- Export Department under the Ministry of Industry and Trade, which was delivered at the seminar, Vietnam was successful in shifting to the high-quality and fragrant rice segment.

Of note, low- and medium- quality white rice exports accounted for 3.88% and 8.24% of the country’s total rice export volume last year. The respective proportions of fragrant rice, high-quality white rice, sticky rice, and Japonica rice were 29.22%, 24.33%, 23.53% and 4.43%.

The Ministry of Agriculture and Rural Development had encouraged the production of high-quality and fragrant rice in the 2013-2014 winter-spring rice crop.

However, high demands this year for low- and medium quality rice products from Vietnam’s traditional importing markets, such as Indonesia and the Philippines, will result in an increase in the proportions of low- and medium- quality rice export products.

Hai’s report showed that Vietnam has signed contracts to ship 700,000 tons of low-quality rice to Indonesia, 130,000 tons to the Philippines and 400,000 tons to Cuba.

Pham Quang Dieu, director of Vietnam Market Analysis and Forecast JSC, said Vietnam is striving to reduce the export of low- and medium quality rice products, but the high demands for these products of Indonesia and the Philippines have increased prices to nearly equal the price of OM 5451 high-quality rice, causing difficulties for State management agencies.

SGT