Vietnam’s export rice price plummets in global market

The prices of Vietnamese export rice endure a sharp decline after hitting a record high in recent months.

Vietnamese 5% broken rice is being traded at US$642 per tonne, down US$21 compared to the previous peak of US$663, while its 25% broken rice is being sold at US$614 per tonne, down US$34.

In contrast, Thailand has seen a significant increase in the price of export rice. On January 26, a tonne of 5% broken rice changed hand at US$656, US$14 higher than that of Vietnam and US$18 higher than that of Pakistan.

As a result, Thailand surpassed Vietnam to take the top spot in terms of global selling prices. 

The General Department of Vietnam Customs reported that Vietnam earned US$134.6 million from shipping more than 194,000 tonnes of rice abroad in January 2024.

It is predicted that rice prices are still on the rise, particularly following India's rice export ban and a limited supply from Asian countries due to the El Nino phenomenon.

According to Le Thanh Hoa, an official of the Ministry of Agriculture and Rural Development, global rice production this year could reach a record of nearly 520 million tonnes, whilst rice consumption may also hit 525 million tonnes, resulting in a shortage of five million tonnes. Global rice inventories would therefore decrease to just over 160 million tonnes.

This represents a great opportunity for the Vietnamese rice industry due to these changes in the market, believes Hoa.

Source:VOV