Opportunities await rice exporters

Experts said opportunities are waiting for Vietnamese enterprises to boost rice exports in the final months of the year as the Philippine government plans to import an additional 400,000 tons of rice and China’s demand is bouncing back.

According to the National Food Authority (NFA) of the Philippines, the country intends to buy 400,000 tons of rice towards the year-end to increase the national rice reserve after the country was heavily affected by Typhoon Rammasun.

Vietnam News Agency cited Francis Pangilinan, President Assistant for Food Security and Agricultural Modernization, as saying that the government would work with NFA soon to finalize the rice import plan to prevent a domestic price hike.

Speaking to the Daily, Lam Anh Tuan, director of Thinh Phat Co., Ltd., a member of the Vietnam Food Association (VFA), said the Philippines has high demand for rice though the country has yet to decide where to import.

Nguyen Cong Khanh, a rice trader in the northern city of Haiphong, said that his clients in China are ordering a large volume of rice. Ngo Ngoc Yen, director of Yen Ngoc Company in HCMC, confirmed there is an increase in the number of clients in Haiphong.

Rice prices in the Mekong Delta region have continued to hike in the past days due to the higher demands of domestic enterprises.

Unprocessed rice prices in Tien Giang and Dong Thap provinces were VND7,200-7,300 per kilogram of IR 50404, VND8,400-8,500 for IR 50404 rice and VND8,900-9,000 for the processed rice of OM 5451 and OM 4218 on Sunday, up VND200-300 per kilogram from around five days ago.

The price of IR 50404 fresh paddy in the region has inched up to VND4,600-4,700 per kilogram compared to VND4,400-4,500 offered by traders some days ago. A kilogram of long-grain rice is sold at VND5,000-5,100, up VND200.

As the domestic rice prices have increased significantly in recent days, some Vietnamese traders have turned to Cambodia to purchase more rice.

Duong Van Men, a rice trader in Dong Thap Province, explained that Vietnamese firms will find it easy to buy rice in Cambodia at lower prices in Vietnam.

According to VFA, its members have signed contracts to sell nearly 5.2 million tons of rice as of this month, with commercial contracts accounting for nearly 3.6 million tons.

Besides, VFA members have exported over three million tons of rice at FOB price, with total revenue of US$1.3 billion this year, down 13.71% in volume and 13.77% in value compared to the same period last year. The average export price is US$431.5 per ton, down US$0.31 per ton.

The rice inventory at VFA members is over one million tons, with Vietnam Northern Food Corporation (Vinafood 1) accounting for 114,500 tons and Vietnam Southern Food Corporation (Vinafood 2) for 281,570 tons.

(english.vietnamnet.vn)