Importers “watch” for low prices to buy
Facing strong fluctuations in rice prices, Mr. Nguyen Van Don explained that because the harvest season is entering, the supply is abundant, so export rice prices have dropped sharply.
In particular, Vietnamese rice import partners proactively slowed down purchases. “They understand our country’s production situation so they wait for rice prices to decrease before buying,” he said. Vietnamese businesses are also cautious, because their potential is limited and they wait for the market to decide to buy. Everything is slow and waiting.
Ms. Bui Thi Thanh Tam admitted that the decrease in rice prices is due to the main harvest in the fields and localities.
Vietnamese rice prices are falling as the main harvest begins. Photo: Dai Doan Ket
Last year, when the price was right, the provinces sowed seeds at the same time. Up to now, everyone has harvested at the same time, so there has been congestion from fields to factories, even from inland ports.
In addition, from March to May, Thailand, the Philippines and Indonesia are also in harvest season. While some African countries, the Philippines… still have a lot of rice in stock, it must be consumed domestically first before continuing to import.
Recently, Vinafood 1 offered to some importers but they said “will research further and discuss later”. Rice prices on the world market are adjusting, Ms. Tam commented.
Although rice prices tend to decrease sharply, Ms. Tam affirmed that farmers still have a profit of 60% based on the production cost announced by the Financial Association, about 4,000 VND/kg.
Mr. Nguyen Nhu Cuong – Director of the Department of Crop Production (Ministry of Agriculture and Rural Development) – informed that up to now the whole country has harvested about 3.2 million tons of rice. In 2024, according to the plan, Vietnam will cultivate about 7.1 million hectares, with rice output estimated at over 43 million tons. Estimated export of about 8 million tons of rice.
However, Mr. Cuong also warned that the rice market has a narrow range and fluctuates very quickly. Therefore, rice businesses need to proactively grasp information and forecast the market to lock in prices, close export contracts at the best prices and bring harmonious benefits to businesses and rice growers.
In fact, in 2023, although rice prices “sublimate” and continuously break historical peaks, under the pressure of capital prices, costs and many objective factors, rice businesses record thin profits and decline. sharp decline, even loss.
According to assessments, rice prices this year are unlikely to fall deeply and continue to maintain at a good level because world demand is still high for this commodity.
