Local rice prices decline sharply

The Vietnam Food Association reported that prices of rice registering for export contracts through July and August 2009 are high while local rice prices declined sharply.

At present, rice prices for exports are a 30-60 USD per tonne higher than that of from early 2009. Accordingly, in Vietnam’s ports, FOB selling price for 5 percent broken rice is USD 460 per tonne, for 10 percent broken rice is USD 450 per tonne, 15 percent broken rice is USD 430 per tonne and 25 percent broken rice is USD 400 per tonne.

While rice prices for export trended to increase, prices of rice purchased at fields decreased from VND 500-600 per kilogram against that of early March. The Information Center for Agriculture and Rural Development (Agroinfo) said that local rice prices in early April declined by 21-22 percent against March.

The annual report on Vietnam’s rice products in 2008 and a view to 2009 recently released by Agroinfo, showed that Vietnam’s rice exports in 2008 decreased sharply in the Asian market (from 78.1 percent in 2007 to 58.8 percent in 2008), but increased sharply in the African market (from 8.4 percent in 2007 to 22 percent in 2008).

Vietnam’s rice was exported to 63 countries and territories in 2007 and this figure doubled to 128 countries and territories in 2008.

The report also said that traditional markets such as the Philippines, Cuba and Malaysia are full of potential for Vietnam’s rice exports. However, economic experts believe that the market that should be paid special attention is Africa, because of the favorable economic development situation in some countries in the region.

Economic experts also believe that Africa will not have sudden changes in commercial policy. Moreover, the market does not have strict requirements in quality. Therefore, Africa is considered as a big potential market for Vietnam’s rice exports.

vietnamnet, hnm, cpv

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