Vietnamese rice price increases in domestic, foreign markets

ABO/NDO - Rice prices in the Mekong Delta region continued to increase slightly in the past week, according to Vietnam Food Association.

Specifically, the highest price of summer-autumn unhusked rice at the field is VND5,100 (US$0.22) per kilo, an increase of VND100 compared to the average price is VND4,950 per kilo. Five-percent broken rice is sold at VND9,400 per kilo at the highest, up VND186 against the normal one.

Statistics from the Institute of Policy and Strategy for Agriculture and Rural Development showed that the price of unhusked rice remains stable in Soc Trang province with Dai thom 8 is an exception. This type of rice is sold at VND7,300 per kilo, a decrease of VND200 per kilo.

Processing rice for export (Photo: VNA).

Other localities in the Mekong Delta also saw the price of unhusked rice unchanged.
Together with an increase of domestic price, the export price of rice rose to a two-and-a-half-month high on September 30 in the context of rising domestic demand and increased purchasing costs. The export price of 5 percent broken rice stood at US$425-430 per tonne, the highest level since mid-July, compared to US$415-420 per tonne in the previous week.

Traders said demand is growing in the country as the government buys rice from farmers for reserve, leading to higher domestic prices. However, the volume of rice exports still decline.

Vietnam shipped abroad 4.5 million tonnes of rice between January and September, a year-on-year decrease of 9.5 percent. The rice shipment in September alone are forecast at 530,000 tonne.
Meanwhile, India's export price of rice down as the rupee weakened, despite heavy rains in the country raising concerns about rice production.

The price of India's 5-percent broken parboiled rice has fallen to between US$358-363 per tonne from US$360-365 per tonne in the previous week. An exporter from India’s Andhra Pradesh state said that heavy rain for the past several days in the eastern and southern states may affect the country's early sowing.

The price of Thailand's 5-percent broken rice was traded at US$385-386 per tonne compared to US$380-386 per tonne in the previous week.

Traders said the demand has improved slightly, but expensive shipping costs remain an obstacle for exports of rice.

In Bangladesh, domestic rice prices remained high despite record summer output and large volumes of rice imports.

(Source: NDO)