VFA cuts 2016 rice export forecast

The Saigon Times | Tue, Jul 5, 2016 02:15:34 PM Share this on

The Vietnam Food Association (VFA) has adjusted down the 2016 rice export forecast by about 800,000 tons to 5.7 million tons.

VFA chairman Huynh The Nang said VFA member companies have reported a steady decline in rice shipments due to fewer export orders, including government-to-government contracts.

Nang said demand of China has inched down but has remained high. Every year, the northern neighbor buys half of Vietnam’s total rice export volume.

Statistics of the Ministry of Agriculture and Rural Development showed domestic exporters shipped abroad 2.69 million tons of rice worth US$1.21 billion in the first half, down 9.8% and 5.9% year-on-year respectively.

Nang said rice exports are predicted to grow in the rest of the year, hopefully driven by big orders from the Philippines and Indonesia.

On the local market, rice and paddy prices have bounced back after they dipped to the lowest this year two weeks ago. IR50404 paddy harvested by combine harvesters is sold at VND4,250-4,450 per kilogram in the Mekong Delta compared to VND3,900-4,000 per kilogram two weeks ago.

Unprocessed rice retails for VND6,350-6,500 per kilogram at Ba Dac wholesale market in Cai Be District in the Mekong Delta province of Tien Giang Province, up VND350-400 per kilogram.

Nang ascribed the increasing prices to higher quality and lower post-harvest losses.

Source: The Saigon Times