Rice export prices soar to new record

On Monday prices rose 2% in a single day to $663. Rice from Vietnam’s competitor Thailand has also risen 8% in the last four weeks to $625 while Pakistan’s prices have risen 9% to $600.

Traders say that rising global demand and declining supply in Vietnam are the reasons for the price hike.

Dinh Ngoc Tam, deputy CEO of rice exporter Co May, said that India, which used to account for 40% of the global rice market, has not shown any sign of lifting its non-basmati white rice export ban since July.

Concerns of trade restrictions and the impact of El Nino weather have prompted countries to increase their purchase to pump up reserves, which has sent export prices skyward.

Up to 90% of Vietnam’s rice varieties are high quality and the country has enough for both domestic needs and exports. It can ship up to 8 million tons globally this year, according to Deputy of Ministry of Agriculture and Rural Development Phung Duc Tien.

In the first 11 months, Vietnam exported 7.75 million tons worth a total of $4.4 billion, up 36% in value. Many buyers from the Philippines, Indonesia and China are competing to buy the rice.