Vietnamese rice exports to Thailand enjoy surge

Vietnam’s rice exports recorded a sharp increase in the first half of March in comparison to the previous period from last year, with Thailand emerging as a key market, according to the Ministry of Industry and Trade (MoIT).

The MoIT revealed that businesses shipped a total of 214,670 tonnes of rice worth US$117.58 million in the reviewed period, representing a boost of 38.5% in volume and 40.5% in value.

Most notably, the rice export volume to Thailand skyrocketed by 30 times to 16,250 tonnes from last year’s corresponding period.

Meanwhile, the rice export volume to other markets, including Ghana, the United Arab Emirates (UAE), Fiji, and Indonesia, also witnessed strong growth rates of 74.4%, 302.9%, 500.5%, and 2,180%, respectively.

The first half of March witnessed rice export orders to the Philippines bounce back, with the nation purchasing 53,620 tonnes of Vietnamese rice worth US$28.84 million, up 53.8% in volume and 51% in value. The Filipino market accounts for 25% of the total Vietnamese rice export volume.

However, statistics show as of April 6, the export price of local 5% broken rice plummeted by US$5 - 10 to below US$500 per tonne, following the downward trend in rice prices globally. Thailand and India lowered their rice prices for export due to the depreciation of their Baht and Rupee currencies against the US dollar.

Pakistan, one of the world’s rice exporters, also offered its 5% broken rice at US$418-422 per tonne, a fall of US$20 compared to the previous week.  

This plunge can largely be attributed to the Indonesian Government’s decision not to import rice until at least June 2021, despite agreements already reached with both Thailand and Vietnam, according to the Ministry of Agriculture and Rural Development.

Indonesian farmers have put mounting pressure on their Government to not import rice during the ongoing harvest which is anticipated to generate high yields.