Though the country saw a steady rise in rice export in recent months but exporters have still taken a dismal view of future prospects.
Rice exporters said shipments to China and African countries have been slowing down, leading to an upsurge in rice inventories. The Vietnam Food Association (VFA) said member enterprises plan to ship 700,000 tons of rice this month.
In May the country exported 788,300 tons of rice, the highest monthly level since January 2010, up 12% year-on-year, and this brought the total rice export volume in the five-month period to 2.5 million tons. However, the export rice price declined against the same period last year.
Recently Vietnam Southern Food Corporation (Vinafood 2) has contracted to export 100,000 tons of 25% broken rice to the Philippines at US$400 per ton. The firm is expected to win another contract to sell 20,000 tons to the Philippines’ National Food Authority.
Given higher offered prices, Thailand failed in the bidding. The Philippines forecast it would import 500,000 tons of rice this year.
However, local exporters are fretting over the slow pace of rice sales to China and African countries. It is a common concern to all industry insiders when the pace is slow as it can cause inventories to surge, said Nguyen Van Tien, general director of An Giang Import Export Co.
Chinese buyers have recently shown signs of breaching contracts when they decline to take delivery of rice. Some have even declined to settle payments. The scenario is repeated in African markets, said Pham Thai Binh, director of Trung An Co.
A price difference of US$35-50 a ton between Indian and Vietnamese rice is said to be a reason for this issue. Due to export interruptions, local firms are worried about a buildup of rice, now at nearly 2.2 million tons.
In the current situation, VFA has proposed authorities set the base price of rice harvested in the summer-fall crop, purchase one million tons of rice for the winter-spring crop and introduce measures to stock up on rice ahead of the coming harvest, said Truong Thanh Phong, chairman of VFA.
thesaigontimes
Rice exporters said shipments to China and African countries have been slowing down, leading to an upsurge in rice inventories. The Vietnam Food Association (VFA) said member enterprises plan to ship 700,000 tons of rice this month.
In May the country exported 788,300 tons of rice, the highest monthly level since January 2010, up 12% year-on-year, and this brought the total rice export volume in the five-month period to 2.5 million tons. However, the export rice price declined against the same period last year.
Recently Vietnam Southern Food Corporation (Vinafood 2) has contracted to export 100,000 tons of 25% broken rice to the Philippines at US$400 per ton. The firm is expected to win another contract to sell 20,000 tons to the Philippines’ National Food Authority.
Given higher offered prices, Thailand failed in the bidding. The Philippines forecast it would import 500,000 tons of rice this year.
However, local exporters are fretting over the slow pace of rice sales to China and African countries. It is a common concern to all industry insiders when the pace is slow as it can cause inventories to surge, said Nguyen Van Tien, general director of An Giang Import Export Co.
Chinese buyers have recently shown signs of breaching contracts when they decline to take delivery of rice. Some have even declined to settle payments. The scenario is repeated in African markets, said Pham Thai Binh, director of Trung An Co.
A price difference of US$35-50 a ton between Indian and Vietnamese rice is said to be a reason for this issue. Due to export interruptions, local firms are worried about a buildup of rice, now at nearly 2.2 million tons.
In the current situation, VFA has proposed authorities set the base price of rice harvested in the summer-fall crop, purchase one million tons of rice for the winter-spring crop and introduce measures to stock up on rice ahead of the coming harvest, said Truong Thanh Phong, chairman of VFA.
thesaigontimes
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