Rice exports enjoy vigorous growth during eight-month period

Vietnam grossed US$2.2 billion from rice exports during the eight-month period, representing an increase of 10.4% in comparison to the same period last year, despite the negative impact of the novel coronavirus (COVID-19) epidemic.

According to the Vietnam Food Association, the price of Vietnamese export   rice has experienced an upward trajectory in recent times, with the export price of 5% broken rice in August hitting a record high, even outstripping that of Thailand. 

Most notably, over the past three decades, this marks the first time that the country has surpassed Thailand in rice exports, with each tonne of 5% broken rice being priced US$20 higher than the Thai product in the world market.

Earlier this year, Thailand's 5% broken rice was being sold at between US$50 and US$60 per tonne higher than that the Vietnamese product.

Despite this, Vietnamese 5% broken rice by mid-August was being traded at between US$493 and US$ 497 per tonne, while the price of the same item from Thailand hovered between US$473 and US$477 per tonne.

Elsewhere, export rice prices from Pakistan and India were at US$427 and US$382 per tonne, respectively.

Aside from 5% broken rice, several Vietnamese rice varieties have also witnessed strong export prices, with DT8 and 5451 rice being traded at US$570 and US$550 per tonne, respectively.

According to local rice exporters, this increase in rice export price can be attributed to improvements made in the overall quality of Vietnamese rice.

Boasting market advantages, coupled with the global rising demand for rice due to the COVID-19 pandemic, there appear to be bright prospects ahead for local export businesses to increase their rice export volume and price moving forward.

In addition, the entry into force of the EU-Vietnam Free Trade Agreement (EVFTA) on August 1 has also served to help some major businesses increase their export price of some rice varieties in a number of demanding markets.

A notable example can be seen in the Trung An High-Tech Agriculture Joint Stock Company in Can Tho city which has signed a contract to ship 3,000 tonne of rice, including ST20 and jasmine rice, to three German clients.

Furthermore, the export price of ST20 rice and jasmine rice to the EU stands at over US$1,000 and US$600 per tonne, respectively, compared to the prices of US$800 and US$520 per tonne before the trade deal came into force.

According to experts, tax reductions due to the EVFTA and the bustling rice market has ultimately pushed up the rice export price in the world market.