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Tuesday, June 25, 2024

Vietnam’s average rice price for export rises over 13% y-o-y

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HANOI – Vietnam’s rice export price in 2020 expanded 13.3% against the 2019 figure to reach an average US$499 per ton, the highest level in recent years.

Last year, the country exported 6.15 million tons of rice, worth some US$3.07 billion. Even though the rice export volume dropped some 3.5% versus the 2019 figure, the rice export value increased 9.3%, according to data of the ministries of Industry and Trade and Agriculture and Rural Development.

The country is switching to exporting more aromatic, high-quality rice with higher prices and added value. Besides this, local rice farmers and traders have paid much heed to improving the quality of rice, origin traceability as well as have adopted measures to meet the requirements of demanding markets such as the European Union, South Korea and the United States.

In 2020, the Ministry of Industry and Trade’s proposal to order a sudden suspension on rice exports starting March 24 sparked public concern for over a month and left a major impact on the country’s rice production and trading activities.

The proposal was then approved by the prime minister as the global demand for food rose sharply given the complicated developments of the Covid-19 pandemic. Also, at that time, there was a growing demand among many countries to increase their rice reserves, leading to the active trading of rice in early March and a sharp surge in the volume of local exported rice. The global rice price inched up continuously, although India and Vietnam, two major rice exporters in the world, had harvested big crops.

The ministry’s controversial decision to temporarily stop rice exports prompted the Government to inspect rice export activities that caused obstacles for the local rice market. The inspection results from a team comprising the ministries of Industry and Trade, Finance, Agriculture and Rural Development revealed that the country had 6.5-6.7 million tons of rice available for export.

Accordingly, the Ministry of Industry and Trade suggested the Government allow the resumption of rice exports starting from April 30, 2020. As a result, the country’s exported rice volume and value started rising significantly, hitting the target of 6.15 million tons worth over US$3 billion.

By Lan Nhi

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