Take advantage of high prices to export rice

Analysis of the situation of rice inventories, production output and world demand , many experts said, Vietnam never lacks rice, so take advantage to sell high-priced rice at this time.

But whether rice exports continue and how will continue will have to wait after 25.4.

Good seasons, good prices

Last week, according to Reuters news agency, India - the world's largest rice exporter - has resumed its exports after a three-week hiatus due to fears of crop shortages.

Accordingly, the price of 5% broken parboiled rice exported from India has increased to 375 - 380 USD / ton (up 15 USD / ton compared to the beginning of March). Immediately, the price of 5% broken rice in Thailand dropped to 530-538 USD / ton (previously it reached 550-580 USD / ton) but this is still the highest price compared to other countries in the region today. .

Mr. Nguyen Thanh An, owner of a granary in An Giang, said that nearly one month until the harvest season. It is forecasted that this year will have a good harvest, less pests and diseases, surely each harvest will yield over 1 ton of rice.

So even though the epidemic season has been difficult, trade has stalled, but the news of the season and prices have made people in general happy and excited. Rice prices are being purchased around 6,000 VND / kg depending on the type, while the previous crop was only 5,000 - 5,500 VND / kg. For example, the previous 5451 rice variety from 5,400 - 5,600 VND / kg, now up to 6,000 - 6,200 VND / kg.

“The high price of purchased rice is due to the high export price of rice , so it can be said that this is a good opportunity for Vietnamese rice grain. However, it is regrettable that while the rice is nearly harvested, the rice has to be filled up because it temporarily stopped exporting ”, Mr. Thanh An expressed his regret.

After Vietnam and India stopped exporting rice, Thailand "alone" a market in this market makes export rice prices increase continuously. World data show that, on March 26, Thai 5% broken rice was offered at an average price of US $ 482 / ton, 25% rice was US $ 450 / ton. In the next day (27.3), these two types increased respectively 495 USD / ton and 463 USD / ton; By March 31, the price soared to an average of US $ 520 / ton with 5% broken rice while 25% rice had stopped bidding

In the first week of April , 5% broken rice of Thailand continued the upward trend, reaching 550-580 USD / ton, the highest level since April 2013. However, during this period, Vietnam temporarily stopped exporting rice. Mr. Nguyen Van Don, Director of Viet Hung Co., Ltd. (Tien Giang), informed that the price of rice purchased compared to the middle of March has increased by 2,000 VND / kg. If not stopped in the past month, Vietnam's rice industry will gain a very good profit.

Do not worry about rice shortage

At the end of March report of Ministry of Industry and Trade, there was a large amount of rice in domestic inventory.

Production in 2020 is estimated at 43.5 million tons of rice, of which the winter-spring crop is estimated at 20.2 million tons, the output of the Mekong Delta is estimated at 10.8 million tons. In particular, the report emphasizes that the impact of saline drought is negligible so rice production in the Mekong Delta is expected to be similar to 2019.

Meanwhile, the Ministry of Agriculture and Rural Development forecasts domestic demand this year including reserves of 29.96 million tons of rice. Thus, the remaining rice for export is about 13.5 million tons, equivalent to 6.5 to 6.7 million tons of rice. Currently, under the direction of the Government, Vietnam has temporarily resumed exporting rice under its quota every month during the Covid-19 epidemic . Rice export quota in April was 400,000 tons and enterprise (DN) registered its quota from April 12.

Assoc.Prof. Duong Van Chin, former deputy director of the Mekong Delta Rice Institute, said that Vietnam was never short of rice - so it needed to be open for export to return to normal. If only a small amount of export volume like the current is causing stagnation, the price will fall, farmers and businesses will suffer.

“It is possible to increase the rice export speed rapidly to take advantage of the high price opportunity. Even if the end of May, about 5 million tons of rice can be exported as possible because the winter-spring crop is the main crop in the Mekong Delta. After that, in the summer-autumn season, only about 1.5 million tons of rice can be exported, which is enough for this year's export target. Many businesses hunt for niche markets, looking for export of different types of rice. Now with higher prices, the more quickly export to benefit businesses and farmers are also excited. Since then, farmers have been encouraged to keep rice fields and produce rice, and this is a condition to ensure food security in the country, ”Assoc. Prof. Dr. Duong Van Chin emphasized.

Turning challenges into opportunities for Vietnamese rice production and consumption

Assoc.Prof. Dr. Nguyen Van Sanh, former Director of the Mekong Delta Development Research Institute, said: The Covid-19 epidemic was a shock to the economy but did not affect Vietnam's rice production. Every three months there is a new source of harvest so there is no shortage of supply. “ China even spends money to buy rice to reserve, to ensure food security for the country itself, but sometimes when finished buying and selling to African countries for profit. Vietnam annually exports rice to China from 2.4 to 3.2 million tons. The most important thing in production and export activities is to welcome market opportunities, which means selling the highest price possible, ”said Assoc.

Assoc. Prof. Dr. Nguyen Van Sanh emphasized: In the current temporary rice export policy, it is advisable to set a target of how to export at the highest price, which can exploit high quality and high price segment. This translates the challenge of translating Covid -19 into an opportunity for Vietnamese rice production and consumption.

Source: https://thanhnien.vn/tai-chinh-kinh-doanh/tan-dung-gia-cao-de-xuat-khau-gao-1213204.html

Take advantage of high prices to export rice