Rice Export Prices to Stand High by late Mar: Industry, Trade Ministry
Rice export prices will stand high by the end of this month as supply is still weak on the world market, the Ministry of Industry and Trade forecast.
Currently, export prices of Vietnamese rice are around $465-$470/ton of 5% broken rice, FOB, at Ho Chi Minh City port.
Meanwhile, Vietnamese exporters are hesitating about signing new contracts for fear of thin supply caused by chilly weather.
At local market, the prices keep soaring as farmers don’t want to sell product even though Mekong Delta provinces started winter-spring harvesting crop.
A kilo of paddy is now selling for VND3,800-VND4,000 while rice prices are ranging between VND6,200 and VND6,300 a kilo.
The International Grains Council (IGC) recently forecast that world rice trade will increase by 2.1% to 29.4 million tons in 2008 despite the price hikes and thin supplies, with higher demand from Asian countries.
The IGC said Vietnam may export 4.7 million tons of rice this year with bumper winter-spring crop.
The Vietnamese government previously said the country will export only around 4 million-4.5 million tons in order to ensure national food security. (Vietnam & World Economy, Vinanet)
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