Rice export prices from Vietnam dropped to the lowest level in the past year. Currently, the rice export market is waiting for India to lift the restriction on exporting rice. If India lifts this restriction, the supply on the world market will increase and prices will decrease. Although this hasn’t occurred, the expectation has led to a decrease in the prices of Vietnamese rice. Let’s learn more in the following post!
The prices of Vietnam Rice export reduced
Regarding exports, Vietnam’s 5% broken rice was offered at 565 – 570 USD/ton on July 11. It was the lowest since July 27, 2023, and down from 575 USD/ton last week. A trader in Ho Chi Minh City said sales activities were still slow because buyers expected India to relax restrictions on rice exports. In June, Vietnam’s rice exports decreased by 40% compared to May, down to 513,409 tons. However, exports increased 7.4% year-on-year to 4.55 million tons in the first half of this year.
Due to low demand this week, as the market waits for India to loosen restrictions, Thai rice prices also decreased, even as export rice prices from Vietnam reached their lowest point in a year. Specifically, Thailand’s 5% broken rice dropped to 570 – 575 USD/ton on July 11. It was the lowest level since early April, down from 585 USD/ton last week.
Rice output meets export demand
In 2024, the global rice trade market still faces challenges. Such as the rice export ban from India, UAE, Russia, and the El Nino phenomenon, and climate change in many areas. These challenges lead to a decrease in the global rice supply. Besides, experts expected the complicated geopolitical situation to impact Vietnam’s rice export business in the last months of 2024.
However, the Deputy Minister of Agriculture and Rural Development said that as expected in 2024 Vietnam will export about 7.4 million tons of rice. Of which, the amount of rice exported in the first 6 months is estimated at 4.38 million tons. The amount in the last 6 months of the year reaches over 3 million tons.
In the first quarter, Vietnam’s rice exports reached more than 2.1 million tons. The main rice export markets are the Philippines, Indonesia, China, Ghana, Malaysia, Singapore… Over 38% of Vietnam’s total rice exports go to the Philippine market.
