Vietnam rice exporters feel Thai heat

Reading Time: 1 minute

Vietnam rice1Thailand’s decision to unleash its huge rice inventory of about 17 million tonnes has negatively impacted many rice exporters, including those in Vietnam, according to the Vietnam Food Association (VFA).

The government of Thailand was forced to reduce the price of its most common rice sort, which is equivalent to Vietnam’s, from $430 per tonne to $380 per tonne.

Currently, Vietnam is exporting rice to China for about $395 per tonne, and to African countries for $380-$385 per tonne. However, many foreign customers are trying to cut the prices of Vietnamese rice exports, paying only $370 per tonne for container shipping.

Furthermore, Vietnamese rice exporters cannot compete with their Thai rivals because of the difference in rice quality.

According to VFA, in the first eight months of 2013, Vietnamese rice exporters had signed contracts for the export of over 7.2 million tonnes of rice. However, contracts worth 1.2 million tonnes were canceled, and only 4.7 million tonnes were shipped abroad during the period.

VFA predicted that about 1.84 million tonnes of rice would be exported in September, about 230,000 tonnes lower than scheduled, so the total rice exports in the 9-month period is estimated at 5.32 million tonnes.

Rice growers have also called for government intervention to compensate the price drop.

Do you like this post?
  • Fascinated
  • Happy
  • Sad
  • Angry
  • Bored
  • Afraid

Reading Time: 1 minute

Thailand’s decision to unleash its huge rice inventory of about 17 million tonnes has negatively impacted many rice exporters, including those in Vietnam, according to the Vietnam Food Association (VFA).

Reading Time: 1 minute

Vietnam rice1Thailand’s decision to unleash its huge rice inventory of about 17 million tonnes has negatively impacted many rice exporters, including those in Vietnam, according to the Vietnam Food Association (VFA).

The government of Thailand was forced to reduce the price of its most common rice sort, which is equivalent to Vietnam’s, from $430 per tonne to $380 per tonne.

Currently, Vietnam is exporting rice to China for about $395 per tonne, and to African countries for $380-$385 per tonne. However, many foreign customers are trying to cut the prices of Vietnamese rice exports, paying only $370 per tonne for container shipping.

Furthermore, Vietnamese rice exporters cannot compete with their Thai rivals because of the difference in rice quality.

According to VFA, in the first eight months of 2013, Vietnamese rice exporters had signed contracts for the export of over 7.2 million tonnes of rice. However, contracts worth 1.2 million tonnes were canceled, and only 4.7 million tonnes were shipped abroad during the period.

VFA predicted that about 1.84 million tonnes of rice would be exported in September, about 230,000 tonnes lower than scheduled, so the total rice exports in the 9-month period is estimated at 5.32 million tonnes.

Rice growers have also called for government intervention to compensate the price drop.

Do you like this post?
  • Fascinated
  • Happy
  • Sad
  • Angry
  • Bored
  • Afraid