Vietnam’s Q1 rice export estimated to reach 1.75m tones

Vietnam’s rice export in March is estimated to reach about 650,000 tonnes, bringing the total rice export volume in Q1 to the highest level so far.

According to the Vietnam Food Association (VFA), the total number of rice contracts for the delivery from March 2011 was 1.23 million tonnes.

The registered rice export contracts till February 28, 2011 was 2.3 million tonnes, rising 3.88 percent against the same period last year.

The total stockpiled rice volume at enterprises till the end of February 2011 was about one million tonnes.

As forecasted, in Q2, the country’s rice export will decrease because the rice export contracts for the delivery from April decreased while the world situation is not stable and the demand is also decreasing.

Totally, in the first two months this year, Vietnam’s export turnover of rice according to the FOB price reached $538.5 million, up 54.75 percent in quantity and 60.21 percent in value according to the FOB price (and up 45.41 percent in value according to the CIF price) year-on-year.

The average export rice price under the FOB price was $490 per tonne, up $16.71 per tone over the same period last year. Of which, the trade contracts accounted for only 22 percent.

Also according to VFA, Philippines, the Vietnam’s traditional market accounts for up to 25 percent of the country’s total export volume of rice, has changed its policy and announced to cut down and delay the import of rice. So far, export contracts between the two governments have been not signed yet.

Meanwhile, Cuba market still met difficulties on payments so it also delayed in signing contracts and the Iraq market gave the priorities for other suppliers.

Therefore, Vietnam will face many hardships in accessing export markets and the trade rice market is not positive due to the impacts from political upheavals of related countries. – DVT

Tags: Vietnam rice, Vietnam rice exports, Vietnam rice exports 2011