The domestic rice market is recording remarkable fluctuations with paddy prices increasing while rice prices are slightly decreasing. This contrast raises many questions about the cause and its impact on farmers and rice exporting enterprises.

Recorded in the Mekong Delta region, the largest rice production center in the country, rice prices are currently high. On August 20, 2024, IR 50404 rice fluctuated around 7,800 - 8,000 VND/kg, Dai Thom 8 rice reached 8,400 - 8,500 VND/kg, while OM 5451 rice was priced from 8,000 - 8,200 VND/kg. These figures show stability and a slight increase compared to yesterday.

Meanwhile, the rice market recorded a slight decrease of 50 to 100 VND/kg for some rice varieties such as IR 504 Summer-Autumn raw rice, down to 11,700 - 11,800 VND/kg. IR 504 finished rice also decreased to 13,800 - 13,900 VND/kg. This was especially evident in localities such as An Cu (Soc Trang) and Sa Dec (Dong Thap), where transactions were slow and the volume of rice bought and sold was not large.

Rice prices increase, rice prices decrease slightly (Illustration photo).

According to some experts, the increase in rice prices is due to high demand, especially from traders and exporters. This has kept rice prices high. In Can Tho, Kien Giang, and other provinces, despite slow transactions, rice prices remain high due to increased purchases from traders, mainly in preparation for large export contracts at the end of the year.

The slight decrease in rice prices amid high paddy prices may stem from difficulties in the domestic consumption market. Although the quantity of goods imported is small, the demand for consumption in food warehouses and traditional markets has not increased, leading to price reductions to boost consumption.

Responding to reporters from Cong Thuong Newspaper, Mr. Huynh Bao Trong, General Director of Thuan Minh Rice, said that the contrast between paddy and rice prices today reflects many complex market factors. “The increase in paddy prices is due to demand from exporters, as they try to stock up to ensure supply for upcoming large export contracts, especially with important markets such as the Philippines and China.”

“The slight decrease in rice prices may be due to domestic competitive pressure, as food warehouses and factories have to adjust prices to match the purchasing power of the domestic market. At the same time, rice exports are currently mainly focused on pre-signed orders, leading to a significant increase in domestic rice consumption,” Mr. Trong added.

It is noted that currently, in the export market, Vietnamese rice is holding the leading position in terms of price. On August 20, 5% broken rice is currently being traded at 575 USD/ton, higher than the same type of rice from Thailand and Pakistan. Similarly, 25% broken rice also reached 539 USD/ton, surpassing Thailand and Pakistan, 100% broken rice is at 440 USD/ton. This shows the strong recovery of Vietnamese rice after previous market fluctuations.

Many businesses in the industry said that the demand for rice imports from other countries is increasing, especially from the Philippines and China. This means that domestic rice prices may continue to remain high in the coming time, as businesses strive to ensure supply for large export contracts.

The current increase and decrease in rice prices reflect changes in the market supply and demand structure. The impact of the export market as well as domestic competitive pressure has been shaping the price trend of rice in the coming time.

For farmers, the high price of rice is a positive signal, while export enterprises need to continue to monitor and adjust their strategies to maintain their competitive advantage in the international market.