Rice prices go up but enterprises commit to meeting domestic demand

The information about the rice price increases in the world market has promptly pushed the domestic prices up. Meanwhile, enterprises have been told to get ready to stabilize the market, in case the “price fever”, the thing that once occurred in 2008, returns.

Sales agents in HCM City have raised the retail prices by 3,000-10,000 dong per kilo for every five-kilo bag. Especially, Thai sticky rice is now selling at over 30,000 dong per kilo, or 8,000 dong per kilo higher than previously. Scented sticky rice is being sold at 60,000 dong per kilo, an increase of 12,000 dong per kilo.

Huynh Cong Thanh, Director of Foocosa Company in HCM City, said that the domestic prices have increased because of the higher input materials. For example, first class rice (5 percent of broken rice), which was traded at 7,000-7,100 dong per kilo, is being sold at 7,450 dong. Meanwhile, it is now the time for Vietnamese exporters to deliver products to importers. Some countries are pushing up rice purchases, including Iraq (60,000 tons) and Cuba (200,000 tons)

Thanh said the demand has increased sharply recently. Previously, the shops of Foocosa chain sold 12-15 tons a day, while they sell 25 tons a day now.

Chair of the Vietnam Food Association Truong Thanh Phong said the world market seems to be stable but the imbalance in supply and demand can be seen in some regions. It is now clear that some countries plan to import rice in big quantities, namely Indonesia, the Philippines, Bangladesh and African countries.

The sharp rice price increases have raised the worry that the “rice fever” which once occurred in 2008, may return. At that time, people, fearing that the rice supply would become short since enterprises boost exports, rushed to purchase rice to store up. As the result, some big cities seriously suffered from the lack of rice, while enterprises could not carry rice from other provinces at once.

“You should learn the lesson from the 2008 rice price fever. Not only the enterprises in Hanoi and HCM City but also the ones in rural areas have to get ready to stabilize the market when troubles occur,” said Phong.

Thanh has reassured the public that Foocosa is still selling normal rice at no more than 8,000 dong per kilo as it has committed, while scented rice price is being at 10,500 dong per kilo. Foocosa still has 5,000 tons of rice in stocks to be provided to the shops in the city. If troubles occur, Foocosa will carry rice from other provinces to HCM City.

Nguyen Thanh Nhan, Deputy General Director of Saigon Co-op, said the prices of food and necessities available at Saigon Co-op chain remain stable. The prices of some products such as canned food, drinks have just increased slightly.

Le Ngoc Dao, Deputy Director of the HCM City Department of Industry and Trade, said the city’s authorities are following a plan to stabilize the market. To date, the prices of the most essential goods remain stable, while the supply remains profuse.- Phap luat

Tags: Vietnam rice, Vietnam Rice prices