The 0-5 per cent and 5-25 percent broken rice, which must be harvested in less than six months and must be delivered by February 28, are priced at US$466 and US$464 per tons, respectively.Previously, the Ministry of Trade of Indonesia approved the import of 500,000 tons of rice from Thailand and Vietnam to fix the insufficient rice supply and price hike in the domestic market.
Vietnamese rice exporters expect prosperity in 2018 after last year’s success
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Vietnamese rice exporters are also expecting from other traditional rice import markets.
Earlier, the National Food Authority of the Philippines also agreed to import 250,000 tons of rice and planned to open rice purchase bidding right in January. The country’s rice stock is enough for use in only three days while the minimum amount must satisfy demand for 15 days.
The Vietnamese rice market, as a result, has become more vibrant. After one month, average free-on-board (FOB) price of one ton of rice increased to US$400 from US$390-395. Prices of dried grain and material rice surge by VND350 per kilogram as compared to the end of December, 2017.
According to experts, rice supplies in many countries such as Malaysia, Philippines and South Korea fell because of climate change. Rice exports will continue to grow thanks to the expansion to other markets including Bangladesh and Iraq in 2017.
Dang Thi Lien, director of Long An Food Stuff Company, said there were many contracts from China and Philippines and the rice prices also increased to US$20 or US$50 per ton.
Nguyen Thanh Long, director of Gao Viet Company, also think that rice exports will get better in the first quarter of 2018 if they have enough supply. The harvest time in several countries like Pakistan and Myanmar already passed while Thailand may harvest late by a month.
Some 764,000 tons of rice remains in the inventory. 209,000 tons of which belong to Vietnam Southern Food Corporation, Vietnam Northern Food Corporation has 107,000 tons and the rest belong to other companies in the Vietnam Food Association.
As of January 11, cities and provinces in the Mekong Delta region harvested 2017 autumn-winter rice on 860,000 hectares and planted 1.35 million hectares of the winter-spring 2017-2018 crop.
However, local firms still need to improve to meet food hygiene and safety requirements and better strategies to compete with India or Pakistan in African markets.
Vietnam’s rice export industry had a successful year in 2017. According to the Vietnam Food Association, local businesses exported nearly 5.8 billion tons of rice last year, earning US$2.5 billion in revenue.
Vietnam has exported rice to 132 markets in the world and China remains Vietnam's biggest buyers.
