In the past few weeks, rice export prices have increased steadily and are now at their highest level since late 2014. Many countries in the region are returning to import rice in Vietnam.

According to the Ministry of Industry and Commerce, Vietnam’s export rice price is constantly increasing. In early June, the price of 5% broken rice (FOB price) was 390 USD / ton, up from 360 – 380 USD / ton at the end of May. This is the highest price since December 2014.

The price of rice has increased continuously, first of all due to the increasing demand in the world market, especially from rice importers in Asia. Bangladesh is in need of importing large quantities of rice to offset about 700,000 tonnes of rice damaged by floods and the Philippines has officially decided to import 250,000 tonnes of rice in late June or July, heating the rice market. Gender, especially in main export countries including Thailand, Vietnam and India.

Information from rice businessmen said that immediately after the signing of the Rice Trade Memorandum with Vietnam, Bangladesh had requested the immediate purchase of 200,000 tonnes of rice, including 25,000 tonnes of rice, the delivery deadline within. 45 days. However, it is regrettable that in Vietnam, only one rice processing plant is operating, but not enough to process 25,000 tons of rice in the above time. Along with asking for rice from Vietnam, Bangladesh also asked to buy 500,000 tonnes of white rice and rice from Thailand, but Thailand was also unlikely to meet Bangladesh’s rice demand as there was no rice to produce. This rice

The Philippines is not only preparing to open bids for 250,000 tonnes of rice, but more. To meet the demand from now to the end of the year and pillow for the first quarter 2018, the Philippines is expected to import at least 1.5 to 1.6 million tons of rice.

It is noteworthy that some other countries in the region are also returning to importing rice. Malaysia recently bought back 40,000 tonnes of rice from Vietnam and is buying 80,000 tonnes. Indonesia is also planning to re-import rice. Demand for imports from two very important markets, China and Africa, is still on the upward trend.

While world demand is rising, supplies are limited, even by many international experts, who believe that they are running out. At the Thailand Rice Conference on “World Rice Trade Outlook,” held in Bangkok on May 29, Jeremy Zwinger (Managing Director of Rice Trader), said that the supply of rice The global tightening, including Thailand’s abundant stockpile of rice, has fallen sharply.

Specifically, in Thailand, in May, the stock of old rice was only 4.32 million tons. Of these, only 1.82 million tons are still usable, 2.5 million tons are too old, and can only be used for animal feed and energy production. In late May, Thailand held a tender to sell 1.82 million tons of rice that is still available to humans. It was not until September that Thailand harvested the crop with an estimated production of 3 million tonnes of paddy and in November the main crop was harvested. As a result, Thailand’s ability to sell rice in the coming months will be severely limited.

In Vietnam, the amount of rice in stock of enterprises is not much and the majority have export contracts to China. In August, Vietnam has just finished harvesting summer-autumn rice crop. India’s supplies are also limited, making it difficult for the country to meet big contracts until the next harvest.

Demand is high while supply is limited, making rice export prices of many countries increase continuously. In early June, Thailand’s 5% broken rice was at $ 430 a tonne, the highest level in nearly a year. India’s 5% broken rice price has also risen to $ 413-441 / tonne …

According to international rice experts participating in the Thailand Rice Conference, rice prices on the world market will increase by about $ 20 per ton in the next 3 months.

Particularly in Vietnam, the demand for export is increasing while the supply is limited, many businesses are actively stocking rice, not hurry to sell, hoping that the price of 5% broken rice will increase more, less At most $ 400 / ton. Some rice businessmen also said that enterprises should not rush to sell when the price of rice increases to avoid damage. Due to the fact, many businesses have suffered losses when signing contracts when export prices are not high.

(According to cafef.vn)