Rice prices hit record high

The prices of the country’s rice for export have skyrocketed to a record high in more than a decade after India, the United Arab Emirates (UAE), and Russia recently announced the suspension of their own rice exports.

The latest restriction of rice exports by a series of rice and cereal producers has raised concerns about the shortage of supply source, pushing up the prices of both Vietnamese and Thai rice to reach the highest level over the past week.

The Vietnam Food Association (VFA) revealed that many importers have actively sought out Vietnamese businesses to purchase rice and pay between US$10 and US$25 per tonne higher than the period before India issues the ban.

Staistics indicate that the prices of Vietnamese and Thai 5% broken rice edged up to US$575 and US$600 per tonne over the weekend, representing increases of 35% and 52%, respectively, against the same period last year.

It is forecast that the price of Vietnamese 5% broken rice will probably rise to US$600 per tonne over the next month.

At present, several markets such as China, the Philippines, and Indonesia are stepping up their imports of Vietnamese rice.

Ensuring national food security – a top priority

Experts point out that despite advantages gained in terms of rising export prices and markets, ensuring food security and domestic consumption demand remains the top priority

At present, the General Department of State Reserves has planned the largest stockpile so far of 250,000 tonnes of rice, which is capable of meeting sudden demand in cases of natural disasters or a pandemic.

Furthermore, as the summer-autumn rice crop is anticipated to be impacted by the El Nino phenomena, farmers are required to focus on the structure of medium and short-term rice varieties in a bid to avoid drought and salinity, especially in the Mekong Delta region.

With these solutions put in place, Vietnamese rice output this year is likely to reach 43 million tonnes, thereby ensuring food security in a variety of different scenarios.

Most notably, according to the Government’s decree 107 on rice export, rice traders are required to co-ordinate in the purchase and consumption of paddies as a way of ensuring benefits for rice growers, while simultaneously maintaiing minimum reserves.

In case the price of domestic rice price skykrockets and becomes unreasonable, rice exporters are responsible for organising the rice distribution system, immediately supplying the rice stock and the stored rice in a bid to stabilise the market.

According to Deputy Minister of Agriculture and Rural Development Phung Duc Tien, amid the complicated El Nino developments and geopolitical tensions that have forced many countries to increase their food reserves, Vietnam is likely to export around eight million tonnes of rice worth more than US$4 billion this year.

Source: VOV