Rice exports target reducing inventory in May, June

Truong Thanh Phong, chairman of Vietnam Food Association, said that rice exports must reach 1.5 million tons in May and June to clear stocks, before purchase of summer-autumn rice crop begins for stockpiling.

Truong Thanh Phong, chairman of Vietnam Food Association, said that rice exports must reach 1.5 million tons in May and June to clear stocks, before purchase of summer-autumn rice crop begins for stockpiling.

Businesses have huge rice stocks for export at present (Photo: SGGP)
Businesses have huge rice stocks for export at present (Photo: SGGP)

Businesses have got contracts to export more than two million tons in the next few months, but about 230,000 tons to the Philippines is unlikely to be delivered as per schedule because the country has not yet issued an import quota.

Meantime, several rice export contracts to China and Africa have been canceled due to price reduction. Null and void contracts now could total 280,000 tons.

World rice prices in April fell by US$10-15 per ton compared to March because supply was higher than demand. At the current rates, Vietnamese businesses, who bought winter-spring rice for stockpiling, stand to lose $20-25 a ton.

Vietnam Food Association has thus proposed to the Government to allow businesses to extend stockpiling time limit of three months. Stockpiling of summer-autumn rice should be assigned to province and city authorities.

Since the beginning of the year, businesses have exported more than 2.1 million tons of rice.

Other news