Rice exports all set for record high this year

Le Thanh Tung, deputy head of the Ministry of Agriculture and Rural Development’s farming department, expected global demand to exceed Vietnam’s export capabilities.

India’s recent rice ban has caused several countries such as Indonesia to increase imports, and the Philippines is considering a cut in rice import tax from 35% to 10% to ensure supply, he said.

“But Vietnam’s availability for exports is not too high.”

Its paddy production is expected to increase by 1.8% from last year to 24 million tons this year, according to the ministry.

Rice exports in the first eight months jumped by 20%year-on-year to 6 million tons.

Nguyen Ngoc Nam, chairman of the Vietnam Food Association, said at least 1.2 million tons would be exported from now until the end of the year.

The Philippines would remain a key market and account for around 40% of the exports, and demand from China would rise due to low production, he said.

Around 400,000 hectares could be harvested in the final crop of the year, and they include many high-quality varieties, he added.

Demand for Vietnamese rice has been growing in recent years.

Vietnam has an 80% share of the Philippines rice market.

With demand from other countries rising, its rice exports are now fetching high prices.

Nguyen Viet Anh, CEO of Phuong Dong Food, one of the top exporters, said prices have surged from VND3,000 per kilogram in 2019 to around VND8,000 ($0.12) now.

“Rice is an essential product, but many countries are not able to produce it and therefore prices are high,” he said, adding that India does not intend to lift its ban until next year.

Some of Vietnam’s rice varieties are now better than Thailand’s, and so at times exporters do not have enough stocks to ship, he added.