The Hanoitimes - According to the Vietnam Food Association
(VFA), the country is struggling to retain its position as the leading rice
exporter in the world since late September, however with rice exports ready to
hit a record 7.7 million tons by the end of this year, Vietnam may hold onto
it position this year.
A report by VFA said that in
October firms exported 646,196 tons of rice at an average price of 445.3 USD
per ton, up 5.23 USD per ton compared to the previous month. Domestic rice
price rose as firms had signed contracts to export 300,000 tons of rice to Indonesia
last month. As a result, long-grain paddy climbed to 6,185 VND per kilo while
common paddy was bought at 6,025 VND per kilo in provinces in the Mekong Delta.
In the first ten months of this
year, the country exported 6.484 million tons of rice, bringing in 2.877
billion USD. According to the plan, Vietnam will export about 1.05 million tons
of rice in the last two months of this year so rice exports will reach 7.5
million tons or even 7.7 million tons if there is a favorable market.
Besides, figures from the
Department of Cultivation show that farmers have completed sowing of the
autumn-winter crop on 730,000 hectares, up 130,000 hectares compared to the
plan, of which 50% of the crop has been harvested by now, with production of
3.7 million tons of paddy, up 500,000 tons compared to forecasts. They have
also sowed the next rice crop on 200,000 hectares with production likely to
reach 860,000 tons, of which 100,000 tons will be ready to harvest next month.
Meanwhile, according to
calculations by the Ministry of Agriculture and Rural Development, the amount
of rice for export this year was 7.5-7.7 million tons and 8.6-8.8 million tons
if including inventory rice of local firms since 2011. Thus, it is feasible to
export 7.7 million tons of rice this year.
However, if Vietnam exports 7.7
million tons of rice, the domestic rice price will climb steeply, causing a set
back for exports. Because global rice prices will not be able to catch up with
domestic prices, especially when India and Myanmar sell rice at 30-100 USD per
ton respectively, lower than Vietnam. But if firms are cautious they will lose
their chance to export rice at high prices, as they experienced last year.
Although, by volume, Thailand
dropped to third rank; by value, it was still the leading rice exporter in the
world as the quality of Thai rice is better. Currently, five-%-broken rice from
Thailand was bought at 570 USD per ton, whereas Vietnamese rice was bought at
490 USD and Indian rice at 460 USD . Therefore, Thailand remained the leading
rice exporter with 3.5 billion USD. Vietnam ollowed with 2.45 billion USD and
India came next with 2.29 billion USD.
Officials from the Ministry of
Commerce of Thailand and Thai exporters also said that Thailand will win back
its leading spot by the end of this year.
Sometimes, the amount of rice
exported to Cambodia through unofficial cross-border trade, which is then moved
to Thailand, is huge. Tinh Bien Border Gate in An Giang alone sees up to 5,000
tons of rice passing through a day. However, since September, rice exports
through unofficial cross-border trade to Cambodia dropped sharply as Thai
traders no longer buy rice as much as before.
Meanwhile, rice exports to China
in the past nine months touched 1.7 million tons, and upto 2 million tons if
including unofficial cross-border trade.
According to experts, though it
helped to lift up domestic rice price, an increase in rice exports to Cambodia
and China will do more harm than good as it might cause a shortage of rice for
firms to fulfill their export orders. In addition, Thai and Chinese traders
will use Vietnamese rice against Vietnamese rice in the global market.
This is a great challenge for
Vietnam’s rice export industry as up to now the country has not had any
strategy for exporting and trading rice. The Ministry of Agriculture and Rural
Development only has a strategy on food security, focusing on balancing
production and consumption, but has not taken into consideration production for
rice exports. If authorities are able to solve this shortcoming, the country’s
rice exports will become more stable and bring in high value.
Source: Dau Tu Tai Chinh
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