Vietnam rice exports plummet on lower global demand
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Rice exports fell 17.4% year-on-year in January to US$203 million as global demand shrank.
In volume terms, they declined by 20.9% to 400,000 tons, according to the Ministry of Agriculture and Rural Development.
Global demand was lower since inventories remained high in many countries, it said.
The U.S. Department of Agriculture said in its January report that the global rice trade is set to fall by 4% this year to 54.4 million tons, the first drop since 2019.
The Thai Rice Exporters Association has lowered the export target for this year from 8 million tons to 7.5 million tons, fearing global crises would affect trade.
Vietnam expects exports to recover by the end of March as the Thai baht continues to gain against the U.S. dollar, making that country’s rice less competitive.
Questions & Answers
Q.What is the reason for the decrease in global demand for rice?
What is the reason for the decrease in global demand for rice?
Global demand for rice was lower because many countries still held high inventories. This contributed to the reduction in Vietnam's rice exports during January.
Q.How much is the global rice trade expected to fall by this year?
How much is the global rice trade expected to fall by this year?
The U.S. Department of Agriculture predicts the global rice trade will fall by 4% this year, reaching 54.4 million tons. This is the first decline since 2019.
Q.When does Vietnam anticipate a recovery in its rice exports?
When does Vietnam anticipate a recovery in its rice exports?
Vietnam expects its rice exports to recover by the end of March. This is partly due to the Thai baht's continued strengthening against the U.S. Dollar, which could make Thai rice less competitive.
Q.Have other major rice exporters also adjusted their export targets?
Have other major rice exporters also adjusted their export targets?
Yes, the Thai Rice Exporters Association has lowered its export target for this year from 8 million tons to 7.5 million tons. They fear global crises will impact trade.
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