Rice exports to flourish

After a poor start in the first quarter, rice exports are forecast to improve thanks to difficulties removed from the Chinese market as well as actively opening up and taking advantage of opportunities from other export markets.  

In the first two months of this year, the rice export price has decreased by more than 17% compared to the same period last year. Photo: ST

Export value fallsby more than 20%

According to the Department of Agricultural Product Processing and Development (MARD),by the end of the first quarter, the volume of rice exported was estimated at 1.43 million tons, earning 593 million USD, down 3.5% in volume and down 20.2% in value compared to the same period in 2018.

The Philippines ranked first in Vietnam's rice export markets with 40.2% market share. The average export price of rice in the first two months of the year only reached 404 USD per ton, down 17.8% compared to the same period in 2018.

Regarding the category of export rice, the value of exporting white rice accounted for 60% of total turnover; Jasmine rice and fragrant rice account for 29%; glutinous rice accounts for 8% and Japonica rice, Japanese seed rice accounts for 3%.

During the first months of the year, the obvious point is that production and export of rice face many difficulties when prices are low. The Prime Minister had to meet with representatives of ministries and sectors to discuss removing difficulties for rice consumption.

Referring to the reason why the export of rice is difficult, Mr. Le Thanh Hoa - Deputy Director of the Department of Agriculture and Market Development of agricultural products evaluated: In the first quarter of the Lunar New Year holiday, the order has not been implemented. In addition, the notable point is that businesses allowed to export rice to China are facing many concerns.

"Recently, the Plant Protection Department has reported the evaluation of the capacity of rice exporting enterprises to the Chinese Customs, as well as reviewing the monitoring with 3 enterprises that have been banned by the Chinese side. Exported rice mixed with grass seeds. At this time, the Vietnamese side is still waiting for China Customs to pass the list of enterprises that are exporting rice back to this market. This year will be a difficult year when exporting to China, although it is expected to import 5.3 million tons of rice, China will discharge rice stocks,”Hoa said.

Some experts said: Besides the Chinese market, the other markets such as Indonesia, Malaysia, Philippines are increasing investment in rice production to reduce imports fromAfrican countries (accounting for nearly one third of total exports). Vietnam's rice is aggressively implementing programs to ensure food self-sufficiency.

Production must be attached to output

According to representatives of the Ministry of Industry and Trade,one of the factors causing difficulties for Vietnamese rice is because Vietnam does not have a national rice brand,which makes Vietnamese rice seeds suffer from fierce competition with big exporters like Thailand, India, and even some emerging countries like Cambodia, Myanmar, and Pakistan.

Regarding rice exports in the future, the Department of Processing and Development of Agricultural Products market forecasts: There will be many new contracts in the second quarter of 2019 because Vietnam's rice prices are at competitive prices compared toother export countries. Currently, some businesses have reached the market and reached a contract agreement. In addition, the announcement of Egypt inviting bids for medium and short grain white rice. The bid is opened to all interested domestic and foreign contractors with deadline for submission of bids until April 30.

Around this issue, Mr. Hoa analyzed more clearly: Although there are difficulties, exporting high quality rice from Vietnam to China continues to increase again after China announced 22 enterprises are allowed to export rice into this market. Meanwhile, the export of the whole rice industry will grow and stabilize. “In addition, the Ministry of Industry and Trade will negotiate rice export quotas into Korea. Along with that, the Indonesian market has announced that rice reserves will end June. This raises hope, in the third and fourth markets, this market will increase rice imports," Mr. Hoa said.

Around rice production and export, speaking at the regular Government Press Conference in early March, Deputy Minister of Industry and Trade Do Thang Hai raised the view: The issue of low rice prices is due to supply increasing while demand did not change much. The purchase of temporary storage of rice is only an immediate solution. In the long term, production must be associated with output. In order to do this, it is necessary to have the general direction of the Government, the helpof MARD and related ministries and branches.

Some experts believe that Vietnamese rice is known by international consumers, it is necessary to build areas specializing in producing quality rice. These regions produce according to the process of tightening and synchronizing. In particular, the stage of building prestige and Vietnamese rice brand in the world market must be emphasized and paid more attention. As Mr. Huynh Van Con, Chairman of LocTroiGroup's Board of Directors said; In order to have Vietnamese brand name and compete in the international market, it is important to apply a sustainable value chain production method. At that time, businesses and people together planned concentrated materials and produced in the form of large sample fields. In the future, businesses need more support from the State to be able to work closely with farmers as well as scientific researchers to create a large production area.