FAO says rice trade competition will remain tough in 2017

CAN THO – The United Nations Food and Agriculture Organization (FAO) has predicted major rice exporters including Vietnam will still face tough competition this year despite a slight increase in global demand.

In a just-released report, FAO said global rice trade this year will total 43.3 million tons, a rise of 4% against last year. However, as the global output of unhusked rice this year will increase by some seven million tons to 758.9 million tons, the excessive supply will trigger tougher competition among major rice exporters, especially in Asia.

FAO has estimated Vietnam’s paddy output this year at 43.5 million tons, unchanged from the previous year. Vietnam is one of the five biggest rice producers in Asia.

The higher rice trade this year is attributed to the shortfall in certain countries as well as efforts to increase rice stocks at some others like Madagascar, Nigeria, the Philippines, Bangladesh and Sri Lanka. However, demand is expected to fall in the Americas and Europe due to abundant supplies.

In that context, the competition among major rice exporters will stay tough until the year-end, FAO said.

India is still the biggest rice exporter, a position it has maintained over the past five years despite tough competition from Thailand.

FAO said rice exports by Australia, Myanmar, Paraguay, Uruguay and Vietnam have all increased this year.

Data from the Vietnam Food Association shows the country’s rice export from early this year to June 6 totaled 2.8 million tons, up a staggering 23.46% year-on-year. Prospects for Vietnam to boost rice export in the rest of this year are still bright as regional demand is poised to increase, with intentions from the Philippines, Malaysia and Bangladesh to buy more rice. 

According to FAO, China is still the world’s biggest rice producer, with output estimated at 210 million tons, followed by India with 160 million tons, Indonesia with over 70 million tons, and Bangladesh with 52 million tons.