Rice export price hits decade high

Rice is the commodity with the highest growth in export value among Viet Nam's agricultural, forestry and fishery products.

According to the Ministry of Agriculture and Rural Development, in the first five months of 2023, rice exports reached nearly 3.9 million tons, worth US$2.02 billion, up 40.8 percent in volume and 49 percent in value over the same period in 2022.

This is also the strongest growth rate in the same period from 2013.

China and Southeast Asian markets such as Indonesia and Singapore are increasing their import of Vietnamese rice, especially high-quality rice.

In the first four months, Philippines was Viet Nam's largest rice importer with 1.29 million tons, equivalent to US$647.5 million, up 40.6 percent in volume and 53.4 percent in value over the same period in 2022.

Among the 15 largest rice export markets, Indonesia increased purchases 26 times over the same period in 2022.

Rice exports to Europe also grew by nearly 50 percent, especially to the Netherlands, Belgium and Poland. At the same time, rice exports still maintain their traditional and key markets, such as the Philippines.

However, some rice processing and exporting enterprises faced difficulties because they signed export contracts in advance, while the purchasing price also increased rapidly due to the export price. This causes businesses to suffer from the difference in input material prices.

Notably, besides the supply that must be kept to support the next crop, a part of it is also used to offset the sharp decrease in imported rice for food processing.

According to Viet Nam Food Association, as Viet Nam's rice exports increased in 2022, the amount of inventory to support this year is significantly low. Currently, the rice harvested in the winter-spring crop is being consumed by businesses.

Therefore, the Association forecasts that by the end of 2023, rice exports may only reach 6.3 - 6.5 million tons, lower than in 2022./.