Vietnam Food Association: No Rice Fever Will Happen
The Vietnam Food Association (VFA) has forecast that there will be no rice fever the Southeast Asian country despite escalating prices because local firms are keeping a large quantity in stock.
Because local firms are stocking 2.4 million-2.5 million tons of rice in stock while they need only 1.2 million tons for already-signed contracts, according to VFA vice chairman, Nguyen Tho Tri.
“Vietnam still has rice for export in the first quarter of next year as Mekong Delta region will reap one million tons of rice in the third crop of 2009,” Tri added.
Rice prices have surged consecutively during the past weeks, hitting VND7,500/kg on Nov 23, up VND300/kg from a week earlier. Rice export prices also reached US$550/ton of 5% broken rice, up from US$500/ton against last week.
The rice prices which are forecast to keep rising in the coming times worry local consumers about a rice fever.
The VFA said that Vietnamese companies inked deals to export 6.45 million tons of rice as of Nov 20. They have so far this year delivered 5.573 million tons, valued at US$2.256 billion, FOB. (Local sources)
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