Packing rice bags at Vinh Phat Rice Co. Ltd. in Long Xuyen city, An Giang province. (Photo: VNA)Deputy Minister of Agriculture and Rural Development Phung DucTien forecasts a potential 11% year-on-year surge in rice export volume in2023, reaching over eight million tonnes for Vietnam.
The year 2023 is full of difficulties for rice export asgeo-political conflicts in the world have disrupted food and input materialsupply. The El Nino phenomenon, which poses a risk of contraction in foodproduction, has triggered some countries’ concern over supply for domesticdemand. The suspension of grain export by countries such as India, the UAE, andRussia has also caused big supply pressure, thus mounting concern in the globalfood market.
However, as a leading exporter of farm produce, particularly rice,Vietnam has still managed to guarantee national food security and exportgrowth.
Facing complex developments in the rice market, the Prime Minister on August 5issued a directive ordering national food security to be firmly ensured andsustainable rice production and export promoted in the current period.
He has also assigned the Ministry of Industry and Trade to coordinate withrelevant agencies to carry out rice trade promotion programmes appropriate tothe new situation to improve Vietnamese rice’s value. They were also asked tocapitalise on preferential treatments under the free trade agreements to which Vietnamis a party to diversify markets and better the competitiveness of theVietnamese grain.
Under the strategy on developing rice export markets of Vietnam until 2030,agricultural authorities are ordering localities and key rice farming zones toconduct restructuring to produce more quality grain for export and raise theadded value.
Though domestic rice supply is low at present, there are still grounds toanticipate that this year’s export volume will surpass eight million tonnes.
About 7.75 million tonnes of rice worth 4.4 billion USD were exported duringthe first 11 months of 2023, rising 36.3% year on year, the Ministry ofAgriculture and Rural Development reported, attributing the surge to a 17.3%increase in the average export price to 568 USD per tonne.
Export prices now average 663 USD per tonne as a result of highdemand, it said.
In addition, the quality of Vietnamese rice in the global market has also been furtheraffirmed after the ST25 variety once again obtained the “World’s Best Rice”title recently.
Vu Van Dong, General Director of the Dai Duong Investment and Trade JSC,perceived that high prices form an advantage but also pose a risk to Vietnameserice.
Businesses can export much and earn big as India, the world’s biggest riceexporter, is suspending overseas shipments of the grain. However, to thosekeeping large stockpile, if they do not make right assessments and properpreparations, they will face difficulties once India or China changes itspolicy, he pointed out.
Businesses hope that rice prices in the winter – spring crop will stay high tobenefit farmers. Meanwhile, export prices in the further future may decline butare unlikely to fall sharply, possibly to about 600 USD per tonne, Dongadded./.
VNA
