Rice prices surge to one-year highs

Thien Thanh Sanitaryware joint company

Rice prices surge to one-year highs

Rice prices in the Mekong Delta have soared to one-year highs after spiking by around VND400 per kilo in recent days. A trader in the region told the Daily that rice exporters in Dong Thap and An Giang provinces are buying IR50404 rice for VND7,500-7,600 a kilo and long-grain rice OM4218 and OM5451 for VND7,800-7,900, increasing VND400 against last week. 

Fresh paddy of the type IR50404 sold for VND5,000-5,100 a kilo over the weekend in An Giang Province and around VND4,950-5,000 elsewhere.

Nguyen Thanh Phong, director of Van Loi 2 Company in Tien Giang Province, said the increases in domestic rice prices had resulted from rising demand on global markets, especially China and the Philippines, amid an undersupply.

On the other hand, specialist Nguyen Dinh Bich said rice prices would inch up slowly in the coming time as Thailand would get back to the rice export market and the drought in India would ease.

However, local rice exporters have offered higher prices in the international market due to the rising demand of importers and the limited supply on the home market.

The export price of 5% broken rice ranges from US$450 to US$460 per ton and 25% broken rice is US$400-410 per ton, a rise of US$15-20 per ton against last week and a year-on-year increase of US$60 per ton.

Meanwhile, Vietnamese jasmine rice is offered at US$605-615 a ton, an increase of US$10 versus last week.

The Vietnam Food Association (VFA) said that in the first three weeks of July, its member enterprises delivered nearly 345,000 tons of rice to fetch US$150 million in revenue. In the year to July 22, the country had shipped 3.3 million tons of rice worth US$1.4 billion.

Vietnam is currently the third biggest rice exporter after Thailand and India.

Specifically, as of mid-July, Thailand topped the world’s rice export with 5.4 million tons, a surge of 57% year-on-year; while India shipped 4.8 million tons, a decline of 11.5% year-on-year and Vietnam 3.5 million tons, a drop of 11% against the same period.
Trung Chanh (http://english.thesaigontimes.vn)