Price of Vietnamese rice remains highest globally after India's export duty tax
VOV.VN - The export price of Vietnamese rice remains the highest in the world after India, the world's largest rice exporter, continued to apply an export tax of 20% on parboiled rice, according to details given by the Vietnam Food Association (VFA).
On August 28 the price of the nation’s 5% broken rice continued to rise to US$643 per tonne, representing a rise of US$13 per tonne higher than Thai rice. This is also the highest level over the past 15 years.
This not only applies to 5% broken rice, but most of Vietnamese rice surpassed Thailand by between US$15 and US$65 per tinne on August 28.
While all varieties of local rice witnessing an increase over the past five trading sessions, Thailand's 25% broken rice fell to US$563 per tonne on August 28, representing a figure US$65 lower than Vietnamese rice. Similarly, Thailand’s 100% broken rice also dropped to US$459 per tonne.
Insiders attributed the sharp rise in Vietnamese export rice prices to the real demand coming from the global market.
Meanwhile, domestic rice prices have continuously inched up over recent days, thereby forcing local exporters to offer rice at a high price in a bid to secure export contracts without incurring losses.
In fact, several businesses do not dare sign new rice export contracts and halt purchasing rice in the domestic market as the local rice has seen products trade at very high prices.
Do Ha Nam, vice president of the Vietnam Food Association, said that the Philippines, Indonesia, and other countries have had to purchase Vietnamese 5% broken rice at high prices. There was a time when local businesses offered rice at between US$680 and US$700 per tonne, but they have not yet accepted to close the order.
This indicates that despite the global market facing a shortage of supply source, the export price of Vietnamese rice is not likely to reach US$800 per tonne.
According to information provided by the General Department of Vietnam Customs, as of the end of August 15 the nation had exported 5.35 million tonnes of rice worth US$2.88 billion, a sharp increase of 22% in volume and 35% increase in value compared to the same period from last year.
Currently, the Philippines continues to be the largest consumer of Vietnamese rice, accounting for nearly 40% of the country's total rice export volume during the first seven months of the year.
Most notably, Vietnamese rice exports to China, the nation’s second largest rice importer, increased by more than 60% compared to the same period from last year.
Simultaneously, Vietnamese rice exports to a series of markets recently recorded a "sudden" increase, including Indonesia, Senegal, and Turkey.
