VietNamNet Bridge – Domestic enterprises have won contracts to ship 240,000 tons of rice to Malaysia this year, said Huynh The Nang, general director of Vietnam Southern Food Corporation (Vinafood 2).



A farmer in the Mekong Delta collects bags of paddy (unhusked rice). Enterprises in the region now buy unprocessed IR 50404 paddy of the 2014-2015 winterspring crop at VND4,100-4,300 per kilo, dropping by around VND500 per kilo against the beginning of the crop 



However, Nang declined to unveil export prices, types of rice and delivery time under those contracts.

Lam Anh Tuan, director of Thinh Phat Co. Ltd. based in Ben Tre Province, a member of the Vietnam Food Association (VFA), said the prices are higher than those of normal commercial contracts signed between local firms and their foreign partners. Shipments of the contracts are planned from April this year.

At present, rice exporters in the Mekong Delta offer their 5% broken rice at US$355-365 a ton.

A source told the Daily that 5% broken rice is the main product of the export contracts awarded to Vietnamese enterprises.

Tu Bao Duy , director of Hua Ngoc Loi Company in Soc Trang Province, a supplier of local rice exporters, said enterprises based in Can Tho City currently buy IR 50404 rice at VND6,000 per kilogram, or US$285 per ton, down VND500-600 per kilo (or US$23-28 per ton) compared to two weeks ago.

They purchase 5% broken rice at VND6,800 a kilo, or US$323 a ton, and fragrant rice OM 4900 at VND8,300 a kilo, falling by VND500-600 per kilo against the previous two weeks.

The price of unprocessed IR 50404 paddy of the 2014-2015 winter-spring crop stands at VND4,100-4,300 per kilo (or US$195-204 per ton), dropping around VND500 per kilo, or US$23 per ton, against the beginning of the crop.

Tuan of Thinh Phat said the new contracts for exporting 240,000 tons of rice to Malaysia would not lift prices on the domestic market as the winter-spring crop lasts until March while delivery under the contracts begins in April.

Thailand has sold rice at low prices to reduce huge inventories while the rice shipped to China with small volumes has declined, said Tuan.