Vietnams Jan-Feb rice export volume dips, value slides faster

Farmers plant rice on a rice paddy field in Ha Tinh province, Vietnam February 4, 2017. Photo by Reuters

Rice export turnover in the first two months falls around 40 percent from a year ago, quickening from a 34 percent slide in January.

Vietnam's rice export extended its downtrend on thin overseas demand, with shipments in the first two months falling 17 percent from a year ago to an estimated 799,000 tons, while the turnover fell faster, the agriculture ministry said Monday.

The Southeast Asian nation, with world ranking in rice export this year expected to remain unchanged at the third position after India and Thailand, would get $248 million from shipments of the grain in the January-February period, down 40.6 percent from the corresponding period last year, the ministry said in a monthly report.

In January, the volume already dropped 31 percent from a year ago to 337,000 tons, while earnings fell 33.8 percent to $144 million, based on Vietnam's customs data.

China, the Philippines and Ivory Coast were the top three buyers of Vietnamese rice last month, the agriculture ministry said.

Slowing overseas demand and uncompetitive prices are putting the brakes on Vietnam's rice exports this year, industry players say.

The Vietnam Food Association has projected the country's rice exports to reach around 5 million tons in 2017. Last year, the volume fell to 4.8 million tons, the lowest level since 2008.