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Export rice to go up in price
The Vietnamese rice export market is showing positive signs as a number of new contracts have been signed.
The information centre of the Ministry of Agriculture and Rural Development said that Vietnam has signed contracts to export 100,000 tonnes of 5 percent broken rice to Malaysia at a cost of US$460 per tonne and 60,000 tonnes to Iraq at a cost of US$500. These are the two biggest contracts in the past two months.
The information centre of the Ministry of Industry and Trade said that Iraq is preparing to purchase long grain rice from Vietnam, India and Pakistan. In addition, African countries have a high demand for rice while Vietnamese rice imports only account for 12 percent of their total import volume. At a recent meeting with rice associations and businesses from Vietnam, Laos and Cambodia, African countries are considering importing rice from Vietnam, instead of Thailand, India and Indonesia, thanks to reasonable prices.
The price of Vietnamese 25 percent broken rice exported to Africa is estimated to be US$320-325 per tonne while the current price on the world market is around US$310-315 per tonne.
The price of Vietnamese five percent broken rice has decreased from US$410 to US$370 and that of 25 percent broken rice declined from US$370 to US$313 due to low demand, However, the situation will be improved soon as the price of export rice in Asia has a general tendency go rise. The world’s biggest rice importer – the Philippines will import around 1.5 million tonnes of rice in 2009 and plans to have negotiations with exporters in late this year or early next year. Iran will also buy around 1.2 million tonnes of rice in the near future.
According to the International Rice Research Institute, the demand for rice will increase by 18 million tonnes in 2009. With the rice export market bustling with activity food prices have increased.
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