After India, the world’s largest rice exporter, removed most restrictions on rice exports in late October, prices in the global market saw a sharp drop.
Prices of 5% broken rice from Pakistan and Thailand fell 5-10% to US$457-490 per ton, according to data from the Vietnam Food Association.
Vietnamese rice similarly dipped to nearly $500 per ton, but bounced back to $522 on Thursday.
The rebound in prices was driven by tightening supply as the harvest season approached its end.
A business in Dong Thap, a major rice-producing province in the Mekong Delta, said it used to purchase 1,000-1,500 tons of rice daily last month, but has only managed to secure about 300-500 tons recently.
Farmers in the country have also been transitioning to rice varieties that yield higher quality and can better compete with other countries’ products.
As a result, Vietnam’s rice supply primarily consists of fragrant varieties in the mid-range and premium segments.
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Rice sold at a store in the Mekong Delta, November 2024. Photo by Thuy Tien |
In the first ten months of the year, Vietnam exported nearly 7.8 million tons of rice for $4.9 billion, up more than 23% from a year ago, according to statistics from the Ministry of Agriculture and Rural Development. The average price was $626.2 per ton, a 12% year-on-year increase.
The Philippines was the largest buyer of Vietnamese rice, accounting for over 45% of exports, followed by Indonesia (14.4%) and Malaysia (8.5%).
Vietnam also spent $1.2 billion importing 3.2 million tons of rice during the period, a 73% increase from a year earlier.
This makes it the third-largest rice importer globally behind the Philippines and Indonesia.
The Department of Crop Production forecasts that Vietnam will produce around 43 million tons of rice this year, enough to export 8 million tons while still meeting domestic demand.
Rice exports are expected to reach a record-high of $5 billion this year.
