Rice export prices of Vietnam and other countries are getting closer together

According to the Vietnam Food Association, on January 22, 2024, the export price of 5% broken rice from Vietnam was at 652 USD/ton, down 1 USD/ton compared to 5 days ago; the price of 25% broken rice was at 617 USD/ton, down 3 USD/ton compared to 5 days ago.

Meanwhile, the export price of 5% broken rice from Thailand was at 648 USD/ton, up 7 USD/ton compared to 5 days ago; the export price of 25% broken rice from Thailand was offered at 581 USD/ton, up 4 USD/ton compared to 5 days ago.

After increasing by 7 USD, Pakistan's export rice price on May 22 is at 625 USD/ton, 25% broken rice is priced at 562 USD/ton, an increase of 6 USD/ton.

With opposite adjustments (Vietnam adjusts up, other countries adjust down), the export rice prices of Vietnam and other countries are narrowing the gap, increasing the competitive opportunities for Vietnamese rice.

Currently, Vietnam's export rice price is only 4 USD/ton (5% broken rice) and 26 USD/ton (25% broken rice) higher than Thai rice.

Higher than Pakistani rice by 27 USD/ton (5% broken rice) and 55 USD/ton (25% broken rice).

Higher than Myanmar rice by 43 USD/ton (5% broken rice)... Meanwhile, in the last months of 2023, Vietnam's rice export price was about 50-60 USD higher than some countries, even up to 100 USD/ton higher (Pakistan).

Seize the opportunity to export rice profitably

The Indonesian National Food Agency (Bulog) has issued an international tender to purchase 500,000 tonnes of 5% broken white rice. The tender deadline is January 29, with the winning batch required to be delivered in February and March 2024. The rice must be from the 2023/2024 crop year and milled no later than six months ago. Accepted suppliers include Vietnam, Thailand, Myanmar, Cambodia, Pakistan, India and China.

“The requirement that rice must be taken from the 2023/2024 crop is not a challenge for Vietnam, because our rice is always fresh and processed for export as it is harvested. This is the advantage of Vietnamese rice, as it is imported and consumed, so even if the price is higher, foreign businesses still order it,” Mr. Vu Quang Hoa, CEO of Duong Vu Rice, told Lao Dong.

However, some businesses also complained that exporting was not profitable because rice prices were rising too rapidly. Contracts were signed at this price, but when the purchase was implemented, the rice price had increased, so businesses did not make a profit, and some businesses even suffered losses.

Regarding this issue, Mr. Pham Thai Binh - General Director of Trung An High-Tech Agriculture Joint Stock Company, said that in fact, in 2023, many export enterprises will earn large profits, not "the more they export, the more they lose" as some enterprises have reported.

“In the marketplace, with their acumen, businessmen will seize the opportunity to export rice and negotiate at profitable prices.

During the recent period of "hot" rice price increase, some businesses seized the opportunity and made big profits, but there were also businesses that did not make a profit, or even suffered losses.

The government and ministries have directed well, the results in 2023 have proven that. If the business is not profitable, then do not sign the contract because no one is forcing it to export. For Trung An Company, we will still sign regular contracts and only do business if we are profitable" - Mr. Binh affirmed.