Rice exports in a fix again

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VOV News English - 69 month(s) ago 21 readings

Rice exports in a fix again

(VOV) - Rice exporters are encountering difficulty as China, the largest consumer of Vietnam’s rice, is slowing down its imports and India is offering rice at competitive prices.

Nation predicted to export 7.2 mln tonnes of rice this year Agro-forestry-fishery exports reach US$11 billion

Le Truong Son, general director of Dong Thap Docimexco, a rice exporter, says China’s slow unloading of containers and its purchasing at a snail’s pace has badly affected Vietnam’s delivery of shipments under signed contracts.

Nguyen Van Tien, general director of the An Giang import-export company, reveals that Vietnam has signed a great many contracts with Chinese businesses at low costs, but the slow delivery has driven up storage fees.

Each tonne of stocked rice causes the delivery price to increase by an additional US$5, says Tien.

According to the Ministry of Agriculture and Rural Development (MARD), Vietnam has shipped abroad an estimated 3 million tonnes of rice in the past five months to earn US$1.4 billion.

Notably, rice exports to China have seen a sharp increase of 4.4 times in volume and fourfold in value in five months, making it Vietnam’s largest rice consumer.

MARD says local rice businesses have sought to expand their outlets to replace traditional markets. Africa has offered substantial growth, with major markets such as the Ivory Coast, Ghana and Senegal consuming large amounts of Vietnamese medium-grade rice.

Meanwhile, Vietnamese rice is in fierce competition against India’s cheaper rice. India is trying to get the lion’s share of the market in Africa, offering 5-percent broken rice at US$410/tonne, US$10-20 lower than Vietnam’s.

Vietnam’s 5-percent broken rice is now sold in several West African countries.

In addition, material for high-grade rice is becoming scarce, posing a big challenge for local rice exporters to speed up the signing of contracts.

Currently, the Southern Food Corporation (Vinafood2) is negotiating a government-level contract to deliver 120,000 tonnes to the Philippines.

In the first quarter of this year, Vietnamese businesses signed commercial contracts to ship 500,000 tonnes to their Philippine counterparts.

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