Domestic rice prices reach new peak
In this article (5)
Vietnam’s domestic rice prices have surged to a new record amid rising export demand while authorities ensure there is no supply shortage for consumers.
Rice seller Thanh in Ho Chi Minh City’s Tan Binh District said that he has recently sourced price the popular Dai Thom rice from manufacturers at VND21,000 ($0.85) per kilogram, up 5% from last month and 16% year-on-year to a new record.
Other types rose 7% from a month ago, he added.
In Go Vap District, rice shop owner Hoa said prices had risen 12% from last month for certain brands.
“Manufacturers say that prices will continue to rise as they have already placed orders at farmers who demanded higher prices,” he said.
Supermarkets are also selling at prices 5-10% higher year-on-year.
WinMart has raised prices on most of its rice, while Central Retail said that it has yet to adjust retail prices, to support consumers, even though suppliers have raised prices by 10%. Saigon Co.op is considering raising prices.
Businesses that use a lot of rice are feeling the heat. Hoang Oanh, owner of a rice noodles manufacturer in HCMC, said that she had to reduce production to minimize risks of losses as rice prices have surged recently.
Dinh Ngoc Tam, deputy CEO of rice exporter Co May, attributed the price rise to surging global demand.
As India’s ban on some rice variety exports remains, the world is seeing a 40% drop in supply from the country, while other countries such as Indonesia, China and the Philippines still have high demands.
Indonesian businesses are willing to buy from Vietnamese exporters at up to $650 per ton, a record high, according to data from exporters.
There is no concern about domestic supply, but as traders are competing and paying more to ensure they can fulfil export orders, prices are rising, Tam said.
Other industry insiders say that Chinese importers are buying more to ensure supply for their Lunar New Year holiday next year, which pushed up prices.
Nguyen Nhu Cuong, head of the Department of Horticulture under the Ministry of Agriculture and Rural Development, said that there was no concern about a shortage in the domestic rice market.
The rice crop area has increased by 30,000 hectares year-on-year, he added.
In the first season of next year, yield is set to rise from 2022 to reach 20 million tons of paddy as farmers’ techniques are improved, he said.
Questions & Answers
Q.What is causing the surge in Vietnam's domestic rice prices?
What is causing the surge in Vietnam's domestic rice prices?
The price surge is due to rising export demand and global factors. Surging global demand, India's export ban, and high demand from countries like Indonesia and China are pushing up prices as traders compete for supply.
Q.Are Vietnamese consumers at risk of a domestic rice shortage?
Are Vietnamese consumers at risk of a domestic rice shortage?
No, there is no concern about a domestic supply shortage. The rice crop area has increased by 30,000 hectares year-on-year, and next year's first season yield is projected to rise to 20 million tons of paddy.
Q.How are retailers responding to the increased rice prices from suppliers?
How are retailers responding to the increased rice prices from suppliers?
Some retailers like WinMart have raised prices, while others like Central Retail have not yet adjusted retail prices to support consumers, despite suppliers raising prices. Saigon Co.op is currently considering price increases.
Q.How have rice prices changed for specific varieties in Ho Chi Minh City?
How have rice prices changed for specific varieties in Ho Chi Minh City?
The popular Dai Thom rice is up 5% from last month and 16% year-on-year, costing VND21,000 per kilogram. Other types rose 7% from a month ago, and some brands saw a 12% increase from last month.
Reader pulse
How should retailers respond?
21,748 votes so far