Vietnam: Export Price of Rice Dropped by More Than 8%

Vietnam: Export Price of Rice Dropped by More Than 8%

Vietnam, the third-largest rice exporter in the world is witnessing a rise in its rice exports. In the first eight months of this year, Vietnam reported a 19 percent year-on-year increase in its rice shipments. Experts in the country are expecting to see the momentum continue for the rest of the year. The rice exports from Vietnam will likely rise to 6.3 million-6.5 million tonnes this year as compared to 6.24 million tonnes last year. However, the price is likely to drop by more than 8 percent. 

The rise in exports is a result of grain shortages around the world, even in major rice-producing countries like Bangladesh. Additionally, India, the largest exporter of rice, is facing a deficit in rice stocks following scarce rainfalls. 

A Look at the Export Numbers 

In the latest preliminary statistics of the General Department of Customs, it reported that Vietnam, in September, exported a total of 583,203 tonnes of rice. The shipments were valued at US$275.31 million, with an average value of US$472/ton. The numbers are down nearly 19 percent in both volume and quantity with the average value dipping by 0.1 percent compared to the same period last year. 

In the first nine months of the year, rice continued to occupy the top spot in exports of agricultural products of the country, but the average value decreased significantly compared to the same period last year. From January to September, the whole country exported more than 5.37 million tonnes of rice, with a total turnover of nearly US$2.61 billion, up 17.7 percent in volume, up 7.9 percent in turnover over the same period last year with the average value staying at only US$484.9/ton which is down 8.4 percent. 

Specifically, in the first nine months of the year, rice exports to this Southeast Asian market reached 2.47 million tonnes, with a turnover of US$1.14 billion, and

with an average value of US$462.9/ton, thereby reflecting a sharp increase of 35.3 percent in terms of value and volume. In terms of turnover, it rose by 22.2 percent in volume but was down by 9.7 percent in value over the same period in 2021. 

India’s Change in Export Policy 

India, the largest rice producer and Rice Exporter in the world, in order to maintain sufficient reserves and regulate the prices, restricted the exports of various varieties of rice. Although the export of premium quality rice like Basmati rice is still allowed, it comes with a 20 percent export duty imposed by the Government of India. 

Since India holds a behemoth share in the global rice market, this move reflected upon various other rice producers and their prices. One of those countries includes Vietnam whose price and supply went up at first but owing to sufficient supplies, the price came down by 8 percent.

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