Vietnamese rice prices have been continuously decreasing. Currently, 5% broken rice from Vietnam is trading at $574/ton, lower than Thai rice by $39/ton and Indian rice by $13/ton. Meanwhile, 25% broken rice is trading at around $570/ton, lower than Thai rice by $7/ton.
In just the past month, Vietnam’s rice export prices have dropped by about $63/ton and $89/ton from the peak of $663/ton in December last year.
The decline in rice export prices has led to a decrease in domestic rice prices since mid-January 2024, from 9,000 VND/kg to 7,300-7,800 VND/kg.
Therefore, after maintaining high prices, Vietnamese rice prices have continuously decreased and lost their position as the highest-priced rice in the world.
The decrease in rice export prices has also caused domestic rice prices to decline. According to updates from the Department of Agriculture and Rural Development (DARD) of An Giang province, the price of rice remains stable today. Specifically, IR 504 rice is priced at 7,300 – 7,500 VND/kg; OM 5451 rice is priced at 7,400 – 7,500 VND/kg; fresh Long An sticky rice fluctuates around 7,800 – 8,000 VND/kg; 3-month fresh sticky rice is priced at 7,900 – 8,200 VND/kg; fragrant rice fluctuates around 7,800 – 8,000 VND/kg; Nang Hoa rice fluctuates at 7,500 – 7,700 VND/kg; OM 18 rice is priced at 7,600 – 7,800 VND/kg; Japanese rice is priced at 7,800 – 8,000 VND/kg.
Vietnamese rice prices have been continuously decreasing recently.
Bui Thi Thanh Tam, Chairwoman of the Northern Food Corporation, said that after continuously increasing in the third and fourth quarters of 2023 due to India’s export ban, rice prices have decreased from mid-January 2024, a decrease of over 9,000 VND/kg to 7,300-7,800 VND/kg. Although the prices have decreased, they are still higher compared to the 2023 Winter-Spring crop and particularly higher than the prices of previous crops. “It must be affirmed that the current rice prices still provide farmers with a profit of about 60% based on the production cost announced by the Financial Association, which is about 4,000 VND/kg, and a decrease from the abnormally high prices,” said Tam.
The leader of the Northern Food Corporation further stated that last year, when prices were high, all provinces simultaneously planted crops. Currently, all regions are harvesting at the same time, leading to congestion from the fields, from factories, and even from domestic ports. In addition, Thailand, the Philippines, and Indonesia also harvest from March to May. Furthermore, some African countries have a large stockpile of rice.
The decrease in rice prices is due to the slow purchasing by businesses and importers waiting for prices to drop. In 2023, the prices increased dramatically, so the current decrease is a decrease based on the previous high prices,” the source said.
According to data from the Ministry of Agriculture and Rural Development, rice exports in February 2024 reached 508 thousand tons with a value of 342 million USD. The average rice export price in February 2024 reached a record of 673 USD/ton.
Compared to the same period in 2023, the volume of rice exports increased by more than 14% (an increase of more than 83,000 tons); meanwhile, the export value increased by 53% (an increase of nearly 161 million USD). The average rice export price increased by more than 33% compared to the same period in 2023 (reaching about 526 USD/ton).
The Ministry of Agriculture and Rural Development also stated that the expected rice production will still reach 43 million tons, and after ensuring domestic consumption for food security, the amount for export target is 7.5 – 8 million tons of rice. March 2024 is the largest crop of the year with a harvest of about 6 million tons of rice, of which 3 million tons are for export.
