Rice export price highest in the past two months

The price of Vietnam's 5% broken rice for export has increased in the last week of September 2021, from US$423-427/ton on September 24, 2021, to US$428-432/ton, the highest level in the past two months. Meanwhile, the price of 5% rice in Thailand is only at US$383-387/ton, and in India it is US$368-372/ton.

Illustration: Internet

According to the Vietnam Food Association, in the first 15 days of September 2021, rice exports reached 247,420 tons, worth US$121,644 million, up 22.18% in quantity and 20.31% in value compared to the same period last year.

In the first nine months of 2021, Vietnam's rice exports reached 4.227 million tons, worth US$2.259 billion, down 12.05% in quantity and 4.49% in value compared to the same period last year. In September 2021, 18 ships entered the ports to load 158,300 tons of rice of all kinds.

However, Vietnam and Thailand's rice exports are facing stiff competition from India.

The Vietnam Food Association identified that although the offer price of India's parboiled rice and white broke rice at the end of the last week of September 2021 increased slightly and the offer price from other suppliers in the region decreased sharply, India remains the most competitive supplier in the world rice trade market.

According to the USDA Foreign Agricultural Service's International Agricultural Trade Report, India's rice exports in 2021 will increase to a record high not seen in the past few years.

India has returned as a major exporter due to significant disruptions in production and trade among other major exporters.

In 2021, India is expected to export 17.7 million tons of rice, 86% higher than in 2020. However, in 2022, it is forecast that India's rice exports will decrease compared to 2021 due to high transportation costs, and the world rice supply exceeds demand.