The world rice supply decreased, and El Nino caused many countries to race to import Vietnamese rice, pushing the price to the highest level in 10 years.
The latest data from Customs show that in the first half of the year, rice exports reached more than 4.2 million tons, worth US$2.26 billion, up over 21% in volume and 32% in value over the same period last year.
According to calculations, in June, the export price of rice reached an average of 650 USD per ton, up 9.4% compared to May and 20.8% higher than last year. Accumulating 6 months, the export price of rice is estimated at 539 USD per ton, up more than 10% over the same period in 2022 - the highest level in the past 10 years.
According to the Ministry of Agriculture and Rural Development of Vietnam, the reason for the sharp increase in rice prices is the decrease in the world supply of rice compared to the same period in 2022. The appearance of El Nino forced many countries to increase purchases to reserve.
In the Philippines, the country's Department of Agriculture forecasts El Nino's return, the risk of severely affecting their domestic food production. And the Indonesian government predicts that El Nino may cause drought in this country, so the July-August harvest for agricultural products may drop sharply. The country is expected to import 2 million tons of rice this year despite continuously increasing rice prices.
Statistics show that in the first 5 months of the year, the main markets, the Philippines and China, both grew strongly at double digits. In addition, rice exports to some new markets such as Indonesia, Chile, Turkey, and Senegal... recorded a sudden increase from 1,100-16,000% over the same period last year.
A few days ago, Bloomberg quoted a source close to the Indian government as discussing a plan to ban the export of all rice that is not Basmati (a popular rice in South Asia). The reason is that domestic rice prices have increased and they want to control inflation. Retail rice prices in Delhi have increased by 15% this year, while the national average price has risen by 8%, according to data from India's Food Ministry.
Before the above information, businesses and Vietnam Food Association said that, if this ban is passed, global rice prices will increase. In the near future, Vietnamese rice will not only benefit in price but also be favorable in export.
An enterprise based in Can Tho said that export orders are abundant, and the price of fragrant rice is increasing the most. They are always in a state of insufficient supply to pay charges. It is forecasted that the rice export market in the second half of the year will reach a high value.
In order to ensure domestic and export demand, before that, the Ministry of Agriculture and Rural Development directed the key rice production areas, especially the Mekong Delta to actively cultivate, giving priority to short rice varieties. High-quality, fragrant rice varieties were suitable for market demand.
Currently, Vietnamese rice has been exported to 156 countries and territories, the market structure is increasingly diversified, and the types of rice exported have been actively shifting towards increasing quality, high-added value, and penetrating many high-end rice markets.