Rice exporters benefit from rising prices

Illustrative image. (Photo: VNA)

The rising demands for rice in international markets and higher prices are benefiting rice exporters as the number of orders has increased sharply.

According to Bui Thi Thanh Lam, Vice Chairwoman of the Vietnam Food Association (VFA), Vietnam has enjoyed many advantages in rice exports in 2022 and 2023.

In the first six months of the year, rice exports reached 4.27 million tonnes worth 2.3 billion USD, up 22.2% in volume and 34.7% in value over the same period last year.

The Philippines remained the largest rice importer of Vietnam, followed by China. Indonesia has just opened a bid package for 300,000 tonnes of rice which not only boosts the export market for Vietnam but also pushes up rice prices.

According to the Ministry of Industry and Trade, the export prices of rice have been continuously revised up since mid-July. Only in the first two trading sessions of the week, Vietnam's export rice prices had two consecutive upward adjustments with an increase of 15 USD per tonne.

Specifically, on July 19, the country’s 5% broken rice was offered at 528 USD per tonne and Vietnam’s 25% broken rice price was 508 USD per tonne, about 20 USD higher compared to those at the beginning of the month.

In the first six months of the year, rice exports reached 4.27 million tonnes worth 2.3 billion USD, up 22.2% in volume and 34.7% in value over the same period last year. (Photo: VNA)

Talking about the prices of Vietnamese rice from now until the end of this year, Hoang Thi Van, an economist at the Institute of Economics and Finance, said that the amounts of rice exported by India, Pakistan and Thailand this year may continue to be limited due to the drought caused by El Nino phenomenon. It is expected that Vietnam's rice exports this year may continue to exceed 7 million tonnes.

Nguyen Thi Quynh Hoa, from the Vietnam Institute of Strategy and Policy for Industry and Trade, suggested a number of solutions to maintain the advantages in rice exports.

First, it is necessary to perfect institutions and policies to promote exports and expand markets. She underlined the need for relevant agencies to review mechanisms for managing rice export trading activities in line with movements of domestic and international markets, ensuring its effectiveness along with national food security.

Second, attention should be paid to developing quality and sustainable rice supply. Specifically, mechanisms should be issued to encourage and create favourable conditions for research, selection and breeding of high-yield and high-quality rice varieties such as fragrant rice and famous brands, namely ST24 and ST25.

Market information work should be strengthened along with trade promotion, she added.

Hoa also said that it is necessary to invest in upgrading infrastructure and logistics systems for rice exports as well as developing digital infrastructure and e-commerce./.