Concerns about rice exports at the end of the year.

According to information from the Vietnam Food Association (VFA) on August 19, 2013: By mid-August, Vietnam had exported more than 4.2 million tons of rice. However, the export market for this key commodity still faces many difficulties due to a sharp increase in supply and low selling prices.

Concerns about slow growth in rice exports.

While paddy prices are trending upwards, rice prices in the Mekong Delta region are currently about 100-200 VND/kg lower than at the end of July. Specifically: The price of dried paddy at warehouses in the Mekong Delta ranges from 5,300 – 5,400 VND/kg for regular varieties; long-grain varieties are around 5,500 – 5,600 VND/kg. The price of raw rice for producing 5% broken rice is currently around 7,050 – 7,150 VND/kg depending on the locality; the price of raw rice for producing 25% broken rice is 6,850 – 6,950 VND/kg depending on quality and locality. The price of finished 5% broken rice without packaging is currently around 8,000 – 8,100 VND/kg. Rice with 15% broken grains costs 7,550 – 7,650 VND/kg, and rice with 25% broken grains costs approximately 7,250 – 7,350 VND/kg, depending on quality and location.

Reportedly, export businesses have intensified their search for new partners and markets. There are still quite a few signed contracts awaiting delivery, totaling nearly 1.8 million tons. However, in July 2013 alone, the number of canceled contracts also increased significantly to approximately 938,800 tons.

Vietnam's export rice prices are currently $50-55/ton lower than those of Pakistan, India, and Thailand. Meanwhile, major rice exporting countries are seeking to release their stockpiled rice onto the market. The Vietnam Food Association (VFA) believes that rice exports may slow down in the final months of 2013 if there are no new positive factors in the global market.N

To ensure the 2013 rice export growth target is met, in addition to closely monitoring global rice market trends, the Vietnam Food Association (VFA) will organize for businesses to seek new partners and markets. In November, the VFA will organize a delegation of traders to attend the World Rice Conference in Hong Kong.

The VFA leadership affirmed that they will focus on accelerating export progress and completing the export plan in the third quarter, as well as preparing for the fourth quarter market and completing the annual plan. The VFA will also closely monitor market developments in importing countries to determine demand, especially in the Philippines and Indonesia in the coming months.

The Vietnam Food Association (VFA) will propose to the Ministry of Agriculture and Rural Development to review the production of commercial rice in the 2013 Summer-Autumn crop to balance exports at the end of the year accordingly. In particular, to clarify its role in the temporary rice procurement and storage program, the VFA will organize a workshop to address outstanding issues and propose recommendations regarding the Association's role and responsibilities in purchasing rice for temporary storage.

In order to alleviate difficulties for rice exporting businesses, the VFA has also proposed to the Ministry of Finance to consider and allow the implementation of the previous method of VAT refund before inspection, in order to reduce difficulties for rice exporting businesses, especially those considered reputable.

According to baocongthuong.PH