Future bright for rice exporters

Wednesday, May 24, 2017 08:30

Farmers in Dong Thap Province harvest summer-autumn rice and sell at rather good prices. — Photo baodongthap.vn

There are some positive signs for rice exports after a period of lull, the Viet Nam Food Association has said.

According to Huynh The Nang, its chairman, the Philippines plans to import 250,000 tonnes to augment its buffer stock for the lean months.

Bangladesh plans to import around 600,000 tonnes, including 50,000-100,000 tonnes of white rice and the rest parboiled rice, to offset crop damage caused by torrential rains.

Some companies have won tenders to export 40,000 tonnes of the grain to Malaysia, he said.

Viet Nam’s exports recovered somewhat in April after a big slump in the first quarter, according to a report by the association.

Exporters shipped 509,628 tonnes last month for free-on-board value of US$228.9 million, a year-on-year increase of 14.6 per cent in volume and 9.75 per cent in value.

Export earnings in the first four months were $701.1 million, a 10.62 per cent fall.

China was the biggest buyer of Vietnamese rice in the first four months followed by the Philippines, Cuba, Ghana, and the Ivory Coast.

Exports of high-grade white rice surged, accounting for nearly 33 per cent of total exports.

Exports of glutinous and Japonica rice also went up sharply in the first four months, but shipments of low-and medium-grade varieties plunged.

The association said the number of export contracts signed in April increased significantly after prices fell, making Vietnamese rice more competitive than others’.

Thailand’s rice inventories have fallen and prices have risen, which could bring back last year’s price gap of $40 per tonne with Vietnamese rice, according to the association.

Government-to-government deals are expected to shrink to very low levels as commercial export contracts dominate.

According to the Department of Crop Production, farmers in the Cuu Long (Mekong) River Delta had sown 950,000ha of summer-autumn rice.

Nang said in some areas farmers had begun harvesting, and enterprises keep a close eye on harvests to buy paddy in time to meet new import demand.

According to rice traders in Dong Thap Province, a kilogramme of OM5451 and OM4900 paddy in the field costs VND5,200-5,300, VND250 – VND300 higher than a year earlier. — VNS

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