A rice warehouse (Photo: VNA)In January, the Indonesian National Logistics Agency (PerusahaanUmum BULOG) initiated a tender to import 500,000 tonnes of rice to bolster thecountry's food reserves. By January 30, BULOG completed the bidding process,with Vietnam as the winner of eight out of 17 packages, distributed among fivecompanies.
According to BULOG, three major Vietnamese companies secured twolots each, including Loc Troi Group Joint Stock Company (LTG) winning lots 8and 14, Northern Food Corporation (Vinafood 1) taking lots 15 and 16, andSouthern Food Corporation (Vinafood 2) obtained lots 3 and 9.
The remaining successful bidders were Kien Giang Import-ExportJoint Stock Company, clinching lot 12, and Phat Tai Food Limited Companysecuring lot 11. Notably, Vietnam stood out as the only country with multiplecompanies participating and securing bids in substantial quantities (more thantwo lots). The sole Singaporean trading company R&S Trader PTE secured lots10, 13, and 17.
The Vietnam Customs General Department data revealed Indonesiasurpassed China to become Vietnam's second-largest rice export market with 1.16million tonnes, totalling 640 million USD, a significant 877-992% increasecompared to 2023.
Industry experts said the recently concluded 500,000-tonne ricetender with Vietnamese companies winning approximately 2/3 of the quantitysignalled a positive outlook for a successful harvest post-Lunar New Year.
The latest data from the Vietnam Food Association (VFA) forJanuary 2024 indicates that despite minor fluctuations, the country's rice exportprices decreased by about 11 USD/tonne compared to the end of 2023, with lateJanuary 2024 data seeing the export prices of standard 5% broken rice at 642USD/tonne.
At this price, Vietnam's 5% broken rice is currently around 13 USD/tonnelower than the equivalent grade from Thailand (according to the Thai RiceExporters Association - TREA, Thailand's standard 5% broken rice is priced at 655USD/tonne). In comparison to Pakistan, Vietnam's 5% broken rice isapproximately 4 USD/tonne higher, with the current price in Pakistan at 638 USD/tonne.
Industry insiders said the current export prices of Vietnameserice aren't high due to limited available stock, with transactions expected toresume at the end of February or early March. During this period, businessesfocus on the domestic market and prepare for the Tet holiday, refraining fromactively entering new contracts.
Updates on domestic rice prices on February 1 in various locationsin the Mekong Delta region reveal that rice prices have been maintainingelevated levels. Key figures include IR 504 rice at 9,000 – 9,200 VND/kg;Fragrant rice 8 around 9,600 – 9,700 VND/kg; OM 18 at 9,600 – 9,800 VND/kg; OM 5451at 9,300 - 9,500 VND/kg; Nang Hoa 9 remaining stable at 9,400 – 9,600 VND/kg;and OM 380 rice fluctuating around 8,600 - 8,800 VND/kg.
Regarding rice prices, a slight increase of 50-100 VND/kg comparedto yesterday is noted. Currently, the price of IR 504 NL rice is at12,500-12,600 VND/kg; while TP IR 504 rice is at 14,650-14,750 VND/kg./.
VNA
