Vietnam’s rice export price hits 3-year high


The price of Vietnamese export rice has hit a three-year high thanks to increasing import demand and restricted supply.

According to the Ministry of Industry and Trade, the demand for Vietnam 5% broken rice has been rising, hitting US$390 per tonne in the first days of June, against US$360 - US$380 per tonne in late May.

This is the highest price since December 2014, the ministry said, attributing it to the rising global demand for rice imports, especially in the Asian region.

The export price rise has also led the paddy price in the domestic market to soar. A tonne of 5% broken rice in the domestic market stood between VND7.65 million (US$340) and US$7.75 million in early June, up by VND550,000 (US$24) per tonne against last month.

The global rice market has been heating up after top importing countries, such as Bangladesh and the Philippines, announced to import roughly 950,000 tonnes of rice recently.

Bangladesh last month said it would buy 250,000 - 300,000 tonnes of Vietnamese rice immediately and planned to increase its rice imports from Vietnam to 500,000 tonnes by the end of 2017. It will also buy one million tonnes of Vietnamese rice annually until 2022.

The Philippines also stated that it would issue a tender late this month or July to import 250,000 tonnes of the rice grains from key suppliers - Thailand, Vietnam and India.

Besides, to meet the rice demand until the year-end, as well as up to the first quarter of 2018, the Philippines is expected to import at least 1.5 - 1.6 million tonnes of rice.

Other regional countries such as Malaysia and Indonesia have also planned to import rice, while the demand for rice from China and Africa is also on the upward trend.


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