Rice export deals beat whole year’s target

CAN THO – The volume of rice export contracts clinched by members of the Vietnam Food Association (VFA) with foreign buyers has hit 6.5 million tons, exceeding the year’s forecast by at least 200,000 tons, a source told the Daily.

The source from Can Tho City’s Department of Agriculture and Rural Development said VFA members have signed deals to export at least 6.5 million tons of rice, with government-to-government contracts making up 1.6 million tons and business-to-business ones the rest.

Earlier, due to difficulties encountered in rice exports, VFA decided to adjust down the whole year’s rice export forecast to 6.3 million tons, predicting quarter three’s volume down to 1.9 million tons and quarter four’s to 1.4 million tons.

Among 6.5 million tons to be exported under the signed contracts, 4.6 million tons had been shipped as of September 25 and 1.9 million tons is bound to be delivered.

However, the current rice stock at rice firms is only 1.1 million tons, with 159,000 tons at Vietnam Northern Food Corporation (Vinafood 1), nearly 415,000 tons at Vietnam Southern Food Corporation (Vinafood 2) and the remaining amount at other VFA members.

Therefore, to fulfill signed export contracts, VFA members need to buy at least 800,000 more tons of rice.

According to Duong Van Men, a rice trader in Dong Thap Province’s Lap Vo District, after a strong rise a couple of days ago, the price of IR 50404 in the Mekong Delta region rose by an additional VND50,000 per ton on Monday to VND7.35-7.4 million.

Meanwhile, some rice exporters in the region said the offer price has stayed stable since last weekend, with 5% broken rice, 25% broken rice and jasmine rice offered at US$440-450, US$400-410 and US$585-595 per ton respectively.

Trung Chanh (Sources:The Saigontimes)