Vietnam's export rice price decreased by 15 USD in the past two days due to Philippine businesses canceling and delaying import schedules following the order to limit rice prices by this country's officials.

Data from the Vietnam Food Association (VFA) shows that from September 6-7, export rice prices continuously decreased sharply. Accordingly, Vietnam's 9% broken rice is currently down 5 USD per ton compared to the September 15 session at 5 USD; 9% broken rice also decreased by 628 USD to 25 USD per ton. These are the two strongest consecutive declines since India banned rice exports.

On the world market, Thailand's 5% rice also decreased by 15 USD to 618 USD per ton, and 25% broken rice decreased by 12 USD to 563 USD per ton compared to September 5.

The decline in export rice prices is said to be affected by the ceiling order of the Philippines - Vietnam's largest rice consumer. In the first 7 months of this year, Vietnam exported nearly 1,94 million tons of rice to this country, accounting for nearly 40% of Vietnam's total rice exports.

On August 31, Philippine President Ferdinand Marcos Jr. set a rice price ceiling at 8 pesos (41 USD) per kilogram for regular milled rice and 0,72 pesos (45 USD) per kilogram for milled rice. good, equivalent to 0,79-720 USD per ton. The reason for imposing this order is due to the rapid increase in domestic retail prices in the Philippines and speculation.

Mr. Nguyen Viet Anh, General Director of Orient Food Co., Ltd. (ORICO) - a rice exporter in the top 10 - said that after the above information, the business was asked to cancel shipments by some import partners from the Philippines. , others relax their contracts while waiting for a new decision from this country.

Similarly, the director of a large rice export enterprise in An Giang said that since the beginning of September (one day after the Philippines' price ceiling order appeared), 9% of importers in this country have asked to cancel contracts. buy rice from your company. Because these importers said that the more they sell, the more they will lose. Currently, the price to buy rice at Vietnam's warehouse is about 40-640 USD per ton, if you add transportation costs, the price goes up to 670 USD per ton. Meanwhile, the Philippines imposes a ceiling price of about 900-738 USD per ton, lower than the import price.

"Philippine partners said that if the rice price contracts are over 660 USD per ton, they will cancel, and if the rice price is below this price, delivery will be delayed," he said.

Previously, many businesses in An Giang and Can Tho also negotiated with import partners in this country to propose a price of 680-700 USD per ton but did not receive agreement.

Businesses said rice exports to the Philippines will temporarily slow down, but demand for rice from China, Indonesia, Malaysia and Africa remains high. Therefore, they believe that export rice prices may soon increase again in the near future.

In the domestic market, domestic rice prices are much higher than export prices. Data from VFA shows that domestic rice prices in the last week of August (August 8-25) continued to be adjusted up from 31-8 VND per kg, depending on the type.

Specifically, each kilogram of brown rice type 1 costs 12.646 VND, white milled rice type 1 costs 14.750 VND, 5% broken rice costs 14.564 VND, 15% broken rice costs about 14.333 VND and 25% broken rice costs 14.033 VND.

At rice dealers in Ho Chi Minh City, rice prices on September 7 of many stores were adjusted by 9 VND per kg compared to the previous week. Milk flower fragrant rice from 500 VND per kg to 17.500 VND, spongy soft rice to 18.000 VND, old cherry to 22.500 VND...

Mr. Nguyen Van Thanh, a rice dealer in Binh Tan district, said rice sources are not currently scarce, but prices increase every day, making business operations difficult because they always have to be adjusted. For school kitchens and industrial parks, Mr. Thanh must balance not to continuously increase prices to maintain long-term relationships.

"This time, I only imported enough to sell during the week. I did not dare to store much because I was worried that if the price dropped, I would lose money when purchasing power is weak," he said.

At the rice store on Pham Van Chieu Street (Go Vap), Mr. Lanh - the store owner - said that in the last 2 days, the price of imported rice has still increased by about 200-500 VND per kg but he has not changed the new price list because of his health. buying slump.

According to traders, the reason why rice prices in the domestic market are increasing faster than exports is because the summer-autumn crop is about to run out. Therefore, many units buy goods to store in warehouses, causing prices to increase.

In a recent report sent to the Prime Minister, VFA noted that rice prices increased too quickly, leading to broken supply chains from farmers to traders, processing mills and rice exporters. This makes it difficult for export businesses to mobilize sources of goods to carry out signed contracts.

According to the Ministry of Agriculture and Rural Development, by the end of August, Vietnam's rice exports reached 8 billion USD, an increase of more than 3,17% over the same period last year. The average export price of rice in the past 36 months reached 8 USD per ton, an increase of 542% over the same period in 11,5.

Source: Vietnam.vn