Rice industry fulfills 96% of export plan after 10 months

Data from the Ministry of Agriculture and Rural Development said that in October , rice exports were estimated at 700,000 tons, worth 334 million USD. Generally, in the first 10 months of the year, rice exports are estimated at more than 6 million tons, with a turnover of nearly 3 billion USD, up more than 17% in volume and more than 7% in value compared to the same period in the first 10 months of 2021.

Thus, the average amount of rice exported in 10 months in 2022 is more than 600,000 tons/month, the average rice price is estimated at 484 USD/ton.

At a recent regular press conference, Mr. Le Minh Hoan, Minister of Agriculture and Rural Development, said that if there were no abnormalities in weather and epidemics, the forecast of Vietnam's rice exports in 2022 would be may exceed the plan by 6.3-6.5 million tons, 100,000-200,000 tons higher than in 2021.

Up to now, after the first 10 months of 2022, with an estimated export volume of 6 million tons, the rice industry has fulfilled 93-96% of the set export plan. Accordingly, in the last 2 months of the year, an average of 150,000 - 250,000 tons of export per month is expected, which is why this industry can fulfill the target.

Meanwhile, on average, each first month of the year, the rice industry has exported 600,000 tons/month, so it can be seen that the forecast of rice exports exceeding the set target is completely feasible with the current reality.

Vietnam's rice export price ranks first in the world

According to the Vietnam Food Association, in October, Vietnam's 5% broken rice price was $425-430/ton, the highest level since November last year. This price is higher than the same rice of India 48-51 USD/ton and Thailand 18-23 USD/ton.

Meanwhile, in Thailand, the price of 5% broken rice fell by 28 USD/ton, from 435 USD/ton to 407 USD/ton, the lowest level since the end of July 2022.

Traders attributed the drop in rice prices to reduced demand in both the domestic and export markets amid no disruption to supply due to flooding. The Thai baht has traded near its lowest level since 2006 against the dollar, driven by lingering concerns about global growth and a recession.

In India, the price of 5% broken parboiled rice in October decreased slightly by 2 USD/ton, from 376 - 384 USD/ton to 374 - 382 USD/ton. Rice prices fell due to reduced consumption demand and rice quality affected by heavy rains.

Mr. Phan Van Co, Marketing Director of Vrice Co., Ltd., said that the export price of Vietnamese rice continues to rise, currently 5% broken rice is at $440-450/ton. The reason for the price increase was the high demand for international imports in the last months of the year while the supply was limited by adverse weather in some rice growing countries.

According to Mr. Pham Thai Binh, General Director of Trung An Hi-tech Agriculture Joint Stock Company, the higher price of Vietnamese rice compared to Thai rice is not the first time.

"In recent years, there have been times when the price of Vietnamese rice is higher than that of Thailand. It has gradually become normal for Vietnamese rice to sell higher than Thai rice. Vietnamese rice lags behind Thailand but is developing many varieties. At the same time, the freshness of Vietnamese rice is higher than that of Thai rice of the same type, so it is increasingly popular with consumers," said Mr. Binh.

According to the Institute of Policy and Strategy for Agriculture and Rural Development, the Vietnamese rice industry in recent years has been shifting from low-grade rice to high-quality rice.

As a result, rice exports to difficult markets recorded a strong growth. For example, rice exports to the US market in the first eight months of this year increased by 84.8%, and to the EU market increased by 82.2%.

Commenting on the demand of the export market, a representative of Trung An company said that difficult markets such as Europe and Korea are very fond of high-quality rice from Vietnam. Accordingly, new orders are constantly being signed and the company recently won an overdraft package to export 20,000 tons of rice to Korea with a value of more than 9 million USD, which is expected to be exported in early 2023.

Forecasting the rice market at the end of the year, businesses believe that the uptrend will last in the coming time. "The high price of Vietnamese rice will last until the end of December," said Mr. Phan Van Co.

According to Mr. Pham Thai Binh, this is due to severe weather in many Asian countries, which account for 90% of global rice production, climate change, and severe drought in the US, Europe and China. , the country with the largest rice demand in the world, is putting the rice supply in short supply.

Besides, India's ban on rice exports 100% and tax on white rice 20% along with the scarcity of food in the world, this is an opportunity for Vietnam's rice export industry in the last months of the year.