This comes as rice export prices have continuously experienced a downward trend since the beginning of the year, with the price from mid-April plunging to a five-month low.
Most notably, the price of 5% broken rice between April 10 and April 17 recorded a fall to between US$485 and US$495 per tonne compared to the price of between US$495 and US$500 per tonne recorded in the previous week.
Furthermore, the rice export prices in a number of other countries, including India and Thailand, have also endured a downward trajectory.
India's 5% broken rice price also dropped to a three-month low as it dipped to between US$388 and US$392 per tonne compared to the price of US$390 and US$395 per tonne recorded a week previously. Elsewhere, Thailand's 5% broken rice price also fell to between US$465 and US$482 per tonne from its level of between US$488 and US$500 per tonne last week.
The latest plunge in rice prices can mainly be attributed to a 4% decline in the Thai baht since the beginning of March, according to details given by traders based in Bangkok.
The first quarter of the year saw rice exports face a decrease of 30.4% in volume and 17% in turnover compared to the first quarter of last year, with 1.1 million tonnes worth US$606 million.
The decline in rice exports throughout the reviewed period can be put down to shortages occurring in terms of supply sources in the winter-spring crop, while the high price of rice has also made many importers decide to wait for a fall to occur before making a move.
According to statistics published by the Vietnam Food Association (VFA), the nation ranked second in the world for rice exports last year with 6.15 million tonnes, while Thailand exported 5.7 million tonnes of rice, raking in US$3.07 billion in the process.
With the exception of high-grade aromatic rice, the country’s 5% broken and 25% broken rice during the early months of the year has been facing fierce competition from the same type of rice originating from India and Thailand.
The VFA therefore anticipate that rice exports starting from the end of April could improve as the supply source of the commodity is now in abundance, adding that the rice industry has set an export target of over 6.1 million tonnes for this year.