Rice businesses receive fresh export orders despite high prices
VOV.VN - Despite the export prices of Vietnamese rice recording a two year high, importers have put in bulk orders following the recent week-long lunar New Year break in Vietnam, signaling another fillip year for rice businesses.
Most notably, rice prices in the world market witnessed strong fluctuations in early February. Accordingly, Vietnamese rice export prices on February 5 increased by US$15 per tonne compared to the end of last month.
Specifically, the 5% and 25% broken rice was being traded at US$473 and US$453 per tonne, respectively, marking the highest price over the past few years. However, the price remained at US$20 per tonne lower than the Thai rice and US$10 per tonne lower than the Pakistani rice.
Do Ha Nam, vice chairman of the Vietnam Food Association, attributed the high export price hike to global economic and political uncertainties, as well as the protracted Russia-Ukraine conflict, forcing a number of countries to increase imports for food reserves.
At present, many major Vietnamese rice importers, such as China, the Philippines, and Africa, are actively purchasing rice as part of their reserves.
In particular, there are positive signs ahead in the Philippines market, the largest consumer of Vietnamese rice this year, as the country has decided to maintain the import tax at 35%, Nam noted.
At present, Trung An High-tech Agriculture Jsc has signed several contracts in order to supply rice for delivery from now until the beginning of the second quarter of the year to a number of markets, including the Republic of Korea, Malaysia, Singapore, Europe, Australia, and the United States. It plans to ship nearly 1,500 containers, equivalent to about 30,000 tonnes, mainly high-quality rice and fragrant rice.
The company has resumed post-break production since January 25 in order to promptly deliver goods to foreign partners, said Pham Thai Binh, general director of Trung An High-tech Agriculture.
The company's selling price of high-quality rice to the European market has skyrocketed, hovering at around between US$600 and US$1,250 per tonne, he noted, adding that 100% broken rice was also traded at US$468 per tonne.
Meanwhile, a representative of Loc Troi Group unveiled that the firm has so far received orders to supply 40,000 tonnes of rice to the European market this year.
With an impressive level of growth recorded in the early days of the year, the group’s representative expected that rice exporters would continue to win big this year and exceed the export target of US$3.5 billion set by the rice industry in 2022.
