Farmers harvest rice in the southern province of Kien Giang. Photo by VnExpress/An Binh
Soaring Vietnamese rice prices are worrying exporters who fear their customers will instead buy cheaper options offered by competitors.
The price of 5% broken rice in Vietnam reached $653 per tonne, more than 16% higher than its two biggest competitors, Thailand and Pakistan.
Do Ha Nam, vice president of the Vietnam Food Association, said buyers might look for other suppliers, such as those in Thailand, for a better price.
Vietnamese exporters were therefore unable to win tenders to supply rice to Indonesia due to high prices, as the Southeast Asian maritime neighbor has already started sourcing from suppliers cheaper.
Large exporters are now stockpiling rice to ensure supplies, forcing small businesses to either pay farmers more money for rice or cancel orders from foreign buyers, he added. Some exporters canceled contracts signed earlier for fear of not being able to fulfill orders.
Nguyen Viet Anh, CEO of Phuong Dong Foods, said Vietnam’s unprecedented rice prices now pose a high risk to companies that do not want to hold large stocks due to fears that India will lift its ban on rice. rice exports, which would lower Vietnam’s prices. plunging.
India imposed a ban on certain rice varieties in July and is expected to maintain the ban until early next year.
Vietnam exported 7.1 million tonnes of rice worth $4 billion in the first 10 months, an increase of 17% in volume and 35% in value.
For the whole year, the country should be able to export up to 8 million tonnes, said Pham Quang Dieu, an analyst at market research firm AgroMonotor.
