Rice exports see positive signals in new year

Rice prices are predicted to decrease in February 2018 as the winter-spring crop harvest begins, however, prices will remain high compared to previous years.

Rice export turnover in the first months of 2018 has increased over the same period last year, both in volume and value.

According to the Vietnam Food Association, in 2017, Vietnam exported over 5.7 million tonnes of rice, exceeding the set plan. As of the end of 2017, the set rice export volume under the export contracts was nearly 6.4 million tonnes, so there are still roughly 630,000 tonnes of rice registered for export in the new year. This is one of the factors creating momentum for the vibrant rice exports at the beginning of 2018.

Statistics from the Ministry of Industry and Trade (MOIT) show that, in January, the country's rice export turnover reached 450,000 tonnes, earning US$214 million, up 34.4% in volume and 49.6% in value over the same period last year. Average rice export prices last month reached US$486.2 per tonne, up 13.6% against January 2017.

The Philippines is still the largest consumer market for Vietnamese rice, reaching 144,890 tonnes with an export value of US$444.5/tonne, accounting for 29% of Vietnam’s total rice exports. China is the second largest market with 114,215 tonnes, valuing US$56.21 million and accounting for 23% of its neighbouring country's total rice exports.

Notably, in the first month of this year, rice exports to Indonesia reached 57,000 tonnes, equivalent to US$27.16 million, and ranking third in the largest markets importing Vietnamese rice, with over 11% of the total export volume. The price of Vietnamese exported rice to this market is also relatively high, at US$476.6 per tonne. This result is due to Vietnam winning the bid to export 141,000 tonnes of rice to Indonesia following the 346,000-tonne tender launched by the Indonesian national food authority at the end of January.

In addition, rice exports to other markets, such as Iraq, the US, Hong Kong (China) and Malaysia witnessed an increase in turnover in the first month of the year.

Rice exporters have predicted that domestic rice prices would tend to decrease in February as the winter-spring crop harvest begins. However, prices will remain high compared to previous years.

With the increase in volume and value, according to the MOIT, the structure of rice exports continues to see a positive shift with a sharp decline in the middle and lower grade rice, while increasing the exportation of high quality rice, such as glutinous rice, japonica and brown rice, which is suitable for export market development.