The Vietnam rice sale is affected by the Thailand government’s decision to slash the prices of rice so as to clear the rice stockpiles in the warehouses under rice pledging scheme.
Vietnam rice export for this month is expected at 650,000 tonnes which is third-quarter export total to 1.84 million tonnes – 230,000 tonnes less than forecast.
Vietnam Food Association (VFA) has reported that Vietnam exported around 620,532 tonnes last month for free-on-board delievery which has declined 32.55% in volume and 33.09% in value from the last year during same period.
With the increase in supply than demand the rice exporters are facing difficulties specially the local rice exporters .In few past days the Thailand decided to slash its rice prices to clear its stockpiles, affecting the rice market in Asia and posing a greater challenge for local exporters.
The Thailand government has taken several steps to lower the prices of rice. The steps included were auctions for exporters, auctioning on the Agricultural Futures Exchanges of Thailand (AFET), selling rice under government contracts and even selling directly to international traders. But these steps were not as beneficial as they were expected as the demand is weak.
Importers are still waiting for the market stability and they are waiting for the Thai government’s move for the Thai rice prices stability.If the prices reduced it will affect the global rice market and other asian rice markets too.
India in addition is expected to harvest 90 million tones of rice.
Philippines and Indonesia will look to import rice in the remaining months of the year, but there will be fierce competition among rice suppliers to meet this demand, VFA said.