Vietnamese rice prices surpass Thailand’s in global markets
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Vietnamese 5% broken rice, which usually costs less than its Thai peers in export markets, raced past them in October to reach record levels. It fetched $425-430 per ton, $48-51, and $18-25 higher than similar varieties from India and Thailand, according to the Ministry of Agriculture and Rural Development.
Vietnam exported over six million tons of various kinds of rice for nearly $3 billion in the first ten months, up 17% and 7% year-on-year.
According to local businesses, this is not the first time Vietnamese rice has fetched higher prices than Thailand’s, but its brand recognition is growing in the world market.
“Vietnamese fragrant rice is still behind Thailand, but it is becoming increasingly popular with foreign consumers,” Pham Thai Binh, general director of Trung An Hi-tech Farming Joint Stock Company based in the southern city of Can Tho, said.
His company exports some 30 containers of rice to Europe every month at $700-1,250 per ton, he said.
Australia recently registered the ‘Gao Ong Cua Vietnam’ trademark for ST24 and ST25 rice varieties developed by agricultural engineer Ho Quang Cua.
ST25 won the World’s Best Rice Contest in 2019 and ST24 came second in 2017.
Loc Troi Group’s rice with the trademark ‘Com Vietnam Rice’ is sold at 4,000 supermarkets in France.
Local firms expect rice exports to remain big and fetch high prices for the next three years since the world is facing climate change and the food supply is falling.
Thailand’s rice production is declining.
Vietnam is the world’s third-biggest rice exporter after India and Thailand and accounts for 7.8% of the global rice trade.
Its rice is sold in 28 countries and territories worldwide, mainly in Asia and Europe.
Questions & Answers
Q.What specifically caused Vietnamese 5% broken rice to reach record price levels in October?
What specifically caused Vietnamese 5% broken rice to reach record price levels in October?
The article states that Vietnamese 5% broken rice 'raced past' Thai prices to reach record levels in October, but it does not specify the underlying cause for this increase in its price.
Q.How much revenue did Vietnam generate from rice exports in the first ten months of the year?
How much revenue did Vietnam generate from rice exports in the first ten months of the year?
Vietnam generated nearly $3 billion from exporting various kinds of rice in the first ten months of the year. This figure represents a 7% year-on-year increase in revenue.
Q.What is the primary reason local firms expect high rice export prices to continue for the next three years?
What is the primary reason local firms expect high rice export prices to continue for the next three years?
Local firms expect high prices to continue because the world is reportedly facing climate change and a declining food supply. Thailand's rice production is also noted as declining.
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