VFA warns over low rice price

The Vietnam Food Association (VFA) said it would raise prices for 25 percent-broken rice to $445 per tonne from the previous floor price of $435, and warned exporters not to sign low-price contracts.

This is the fifth increase of rice prices in two months. Since mid-August, the export price of 25 percent-broken rice has risen by a combined $80 per tonne.

Truong Thanh Phong, chair of the association, said in a meeting review with member companies in HCM City last week that with this new price, the low-grade rice price is only $5 below that of the corresponding Thai rice. For the 5 percent broken rice, the price remains at $475 per tonne. Phong also noted that the prices can be further adjusted depending on the situation.

In August and September, there were lots of contract cancelled due to the wrong prediction about the uptrend of prices and low local supply. That explained why VFA gave the warnings, Phong said. Pham Van Bay, VFA vice chair, said import demand is rising in the coming months and complicated weather conditions not only in Vietnam but also in many rice exporters will make exports of the grain in the coming months complicated.

In the fourth quarter, Vietnam will have to deliver more than 1.1 million tonnes under contracts with Indonesia, Iraq and others. According to VFA, the volume of rice contracted for export already amounts to over 6.8 million tonnes, while Vietnam targets to export only 6.5 million tonnes this year, higher than last year’s 6 million tonnes. – Saigon Times

Tags: Vietnam rice, Vietnam Rice prices

Posted by VBN on Oct 27 2010. Filed under Agriculture. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry