Vietfood’s businesses had already purchased more than 490,000 tonnes of rice. Nguyen Tho Tri, Vietfood’s vice chairman, said the purchase will end in September. Businesses will buy at market price but not lower than the minimum price of VND3,800 per kilogram. The minimum price was agreed by leaders of the departments of agriculture of Mekong Delta provinces to ensure profits for farmers, businesses and traders.

Vietfood forecasts that the price of export rice will increase later this year when African countries and other major importers will place large orders for rice. In addition, countries often sign contracts to buy rice in late December to stock up for next year.

By that time, businesses will have exported around 4.5 million tonnes of rice out of more than 5.5 million tonnes contracted, earning over US$2 billion. The average export price for rice is US$408 per tonne.