Vietnams rice prices suffer fall due to sharp decline in demand from China

Vietnam is facing a number of difficulties in branching out to new markets due to a sharp decline in rice demand from China, according to a trader in HCM City.

Vietnam's export rice prices suffered a fall this week as the demand from China has plummeted. In addition, droughts in Thailand continue to threaten the supply source, while a weakening Indian rupee has affected India’s rice prices.

As a result, the country’s 5 per cent broken rice price dropped bweteen US$ 340 -US$350 per ton last week to between US$ 335-US$345 per ton this week.

According to the General Department of Vietnam Customs, the rice export volume to China during the January to July period fell by 65.7 per cent to 318,100 tons in comparison with the same period last year.

Although traders have pointed out that Chinese demand for rice remains high, Chinese importers find it challenging to purchase rice from Vietnam due to new technical barriers being erected by the Chinese government.

Within the Thai market, the country's 5 per cent broken rice price increased from between US$406-US$ 425 per ton last week to between US$415 and US$425 per ton this week.

Traders attributed these high prices to concerns regarding supply sources as Thailand has been experiencing its worst drought in a decade.