The data from the Vietnam Food Association shows that in the trading session on February 22, the price of Vietnamese 5% broken rice for export dropped sharply by $19/ton (to $609/ton). Compared to the peak price of $663/ton, the price of 5% broken rice has decreased by $54/ton, equivalent to 8.1%.
With the current trading price in Vietnam, the country has lost the title of the world’s highest rice exporter to Pakistan, as their 5% broken rice is being offered at $612/ton. The same type of rice from Thailand, although also decreased by $3/ton, still maintains a higher selling price than Vietnam, at $611/ton.
The price of Vietnam’s 25% broken rice also dropped by $20/ton in the recent trading session, recorded at $584/ton, while Thai rice decreased by $2/ton to $561/ton and Pakistan rice decreased by $5/ton to $570/ton.
For 100% broken rice, Vietnamese rice remains stable at $508/ton, while Thai rice increased sharply by $19/ton to $483/ton, and Pakistan rice increased by $1/ton to $465/ton.
Vietnamese rice loses its position as the highest-priced rice in the world.
The reason for the decrease in rice prices, according to businesses, is the reduced demand from major Indonesian customers. This country is preparing for the month of Ramadan and has previously “locked in” a contract for 500,000 tons at the end of January, mostly with Vietnam and recently about 230,000 tons with Thailand. Thanks to this, this major customer has increased the total rice supply to ensure the people are provided until the end of April.
In addition, the supply on the market is also abundant as Vietnam and some countries are entering the new rice harvest season. Businesses believe that the downward trend of rice prices will not last long, as financially capable businesses will import rice and sell it when the harvest season is over.
Prior forecasts also indicate that the price of rice for export will continue to fluctuate upward in 2024 due to tightened supply. Meanwhile, the increasing import demand from many countries such as Indonesia and the Philippines will affect the increase in rice export prices.
Preliminary statistics from the General Department of Customs show that in January, Vietnam exported over 512,000 tons of various types of rice, earning $362.3 million. Compared to the same period last year, rice exports increased by 42.8% in volume and a staggering 94.5% in value due to the high price of this commodity.
