Worry again rice export sugar

Many businesses are worried that rice can not be exported without signing a new contract for weeks amid world rice prices falling.

According to a report of the Ministry of Industry and Trade, in June 2020, the value of rice exports decreased to 53.8%, reaching only about US $ 182 million compared to May (US $ 395 million). Generally in the first 6 months of 2020, rice export output reached 3.54 million tons, turnover of 1.73 billion USD, up 5.6% in volume and 19.3% in value over the same period. However, 2019 is a year of low rice prices with an average export price of only USD 441 / ton, down 8.3% compared to 2018.

Lack of output

Mr. Do Ha Nam, Chairman and CEO of Intimex Group Joint Stock Company (HCMC), predicted that rice export in the last 6 months will be "very sad" due to lack of output. "The importers have hugged so much in the first months of the year, now they have to worry about consuming it, then they will consider importing them. The rice degrades very quickly so they will prioritize the consumption of imported goods. They have bought a lot." At high prices, a number of imported enterprises have suffered losses, and recently the Philippines canceled its centralized package of 300,000 tons (Vietnam won 60,000 tons) before signing an official contract. Bidders are not compensated "- Mr. Nam informed.

Mr. Pham Thai Binh, General Director of Trung An High-tech Agriculture Joint Stock Company (Can Tho City), said that this is sad news of Vietnam's rice industry in the beginning, when it was very difficult at the beginning.

Rice of an export enterprise is introduced to consumers

Output difficulties are the common situation of many rice exporting enterprises. According to Mr. Nguyen Van Don, Director of Viet Hung Co., Ltd. (Tien Giang province), over the past 3 weeks, businesses have not signed any new contracts.

"Generally, in the first 6 months, the enterprise exported only about 60,000 tons, equivalent to 2019. Only in May, the export of the company mutated to compensate for the interruption period due to the temporary suspension of rice export. Vietnam is harvesting the summer-autumn crop, the importing countries know this so they want to lower the buying price, but farmers in the new crop still expect rice prices to be as high as the beginning of the year so businesses can not match export contracts. "- Mr. Don analyzed.

Global rice price movements in recent weeks have shown a clear downward trend due to quiet global rice demand. According to the Vietnam Food Association, on 9-7, 5% broken white rice of Thailand offered 455 - 485 USD / ton, the lowest level in the past 4 months. 5% broken rice price of India also 366 - 372 USD / ton, the lowest level since March 26. In Vietnam, the supply from the summer-autumn crop is gradually being introduced to the market, causing the price of rice to decrease slightly from the previous month. 5% broken rice of Vietnam decreased from a high of 475 USD / ton to 450 USD / ton (delivered in Ho Chi Minh City), the lowest level in nearly 2 months.

Source: https://nld.com.vn/kinh-te/lai-lo-bi-duong-xuat-khau-gao-20200713210133296.htm