Rice exports forecast to grow in H2

Rice is bound for foreign markets. Rice exports are forecast to further flourish in the second half of 2017 - PHOTO: TRUNG CHANH

CAN THO – Rice exports are forecast to further flourish in the second half of 2017, helped by increasing demand.

As of mid-June, rice exports had reached over 2.9 million tons, up more than 27% compared to the same period last year.

Vietnam has the strongest rice export growth rate among the top five rice exporting countries in the world. The U.S. posted rice export growth of 25.54%, Thailand 13.57% and India 3.57%, but Pakistan saw a 33.44% decline in rice outbound sales.

Data of the Vietnam Food Association (VFA) showed that as of late May 2017, its members had shipped a total of nearly 2.3 million tons, up 9.71% year-on-year and the total FOB value of the volume was nearly US$975 million, up 11.29%.

According to VFA, rice exports will further grow in the rest of the year, supported by government-to-government contracts.

Huynh The Nang, chairman of VFA and general director of Vietnam Southern Food Corporation (Vinafood 2), said since last month, Vietnam had secured contracts to export about 880,000 tons of rice to markets under G2G deals.

There is a high possibility that Vietnam can win a tender to export 250,000 tons of rice to the Philippines early next month, Nang said, as Thailand’s current rice inventory is around 160,000 tons, only enough for domestic demand, and moreover, Thai rice prices are higher than Vietnam’s.

The Mekong Delta, Nang said, is expected to have three million tons of rice for export after the summer-fall crop. Last year the nation exported a total of 6.3-6.4 million tons of rice.

The brighter rice export outlook has bolstered domestic rice prices in recent times. Fresh IR 50404 rice is now sold for VND5,000-5,200 per kilo, up VND500-600 against two weeks ago, while IR 50404 material rice has edged up from VND6,700-6,800 per kilo toVND7,200-7,300.