In response to the news that Thailand is preparing to release over 11 million tons of reserve rice to the market at low prices, rice exporting enterprises in Can Tho city said they are not concerned about this information and that releasing Thai rice to the market will not affect Vietnam's rice export market.

Illustration photo.

Mr. Nguyen Trung Kien - Chairman of the Board of Directors of Gentraco Joint Stock Company (Can Tho), said he had heard that Thailand would release to the market over 11 million tons of rice reserves, but of the above rice, more than 80% of the output sold was for food technology and processing technology, the rest was raw rice with very small quantity, so there was no need to worry about competition with Vietnam's rice export products.

According to Mr. Pham Thai Binh, Director of Trung An rice export enterprise, Can Tho city, if Thailand releases rice to the market with an output of over 11 million tons, it will more or less affect Vietnam's rice export output, but will not affect Vietnam's rice export market.

Because Thai rice is old and of low quality, it can only be sold in some markets of poor countries like Africa or sold to humanitarian rice aid organizations or used for food processing.
Meanwhile, Vietnam's exported rice is new rice, high quality rice, specialty rice is exported to all markets in the world and has a stable market.
"On the other hand, in the face of drought in many countries around the world, including Vietnam, the world's rice consumption demand this year and in the coming years will continue to increase due to crop failures and reduced production in many countries.
Therefore, even if Thailand launches a cheap rice dump, it will not affect Vietnamese rice exporting enterprises. The possibility of Vietnam exporting 7 million tons of rice this year is completely feasible," said Mr. Pham Thai Binh.
According to Mr. Binh, since the beginning of the year, the rice export situation of Trung An enterprise has been quite favorable, with relatively good export prices, averaging from 375 USD/ton for 5% broken rice of regular type to 500 USD/ton for Jasmine rice.
Since the beginning of the year, the company has exported over 40,000 tons, mainly to markets such as Southeast Asia, Asia, Europe, America, Africa...
However, due to the drought and saltwater intrusion that have reduced rice productivity and output in the Mekong Delta region, domestic rice prices have increased more strongly than export rice prices, making it difficult for rice exporting enterprises to sign new export contracts, while farmers benefit more due to high selling prices.
Rice growing areas not affected by drought and saltwater intrusion in the Mekong Delta such as Can Tho, An Giang, Dong Thap... rice farmers achieved higher profits than previous years.
Mr. Nguyen Minh Toai, Director of the Department of Industry and Trade of Can Tho city, said that over the past half month, the rice export market of enterprises has been sluggish, the rice export output of enterprises in the area has decreased by 30-40%.
The reason could also be that rice importers are waiting for Thailand to release its rice reserves for sale. Therefore, the authorities need to have specific information so that businesses know in detail what kind of rice Thailand is selling, where it is sold...
According to businesses, to maintain the traditional rice export market in Southeast Asian countries, businesses need to closely monitor market developments, improve product quality and access markets to maintain market share in these important markets.
After a period of sharp increase, the purchase price of rice in the region has now leveled off, the purchase price of all types of rice has decreased by about 200 VND/kg compared to 2 weeks ago.

Currently, the price of dry rice variety IR 50404 purchased by traders is from 5,450 to 5,500 VND/kg, the price of fresh rice variety IR 50404 that traders have placed a deposit to buy in the upcoming Summer-Autumn crop is from 4,400 to 4,500 VND/kg, down 200 VND/kg compared to 10 days ago but still higher than the same period from 400-500 VND/kg.
According to Mr. Pham Cong Dien, a rice trader in Thoi Long ward, O Mon district, Can Tho city, the price of rice has decreased because the selling price of rice to export purchasing enterprises has decreased because the rice export market is currently quiet.

It is not yet time to harvest the Summer-Autumn rice crop, but we still have to find and deposit to buy rice in advance from farmers in provinces such as Kien Giang, An Giang, Bac Lieu and Can Tho.
Farmers' deposit to buy rice in advance is also a risky business because when harvest time comes, if rice prices drop, traders will suffer losses. Sometimes, when rice prices increase at harvest time, some farmers break the contract and sell to other traders...

The current unusual increase and decrease in rice prices is unpredictable.

According to Kinhte & Do Thi Online