The Vietnamese Ministry of Agriculture and Environment announced that rice export prices have shown signs of recovery as of February 26, after nearly two months of consistently falling. A US$3 a ton increase was recorded, resulting in the following prices that a ton of 5 percent broken rice is worth $394 while a ton of 25 percent broken rice $368 and a ton of 100 percent broken rice $310.
The price of Vietnamese rice remains significantly lower than Thai and Indian varieties. Currently, 5 percent broken rice from Thailand is offered at $425 per ton, while the same grade from India is priced at $413 per ton.
Indian and Thai rice exports command premium prices, often exceeding $400 per ton. In contrast, Vietnamese rice remains below the $400 mark, the lowest among major rice exporters. However, the overall rice export market has yet to make a robust recovery, leading to a modest decline in domestic rice prices.
Specifically, raw OM 380 rice fell by VND50 to VND7,550-VND7,700 per kilogram, while finished OM 380 rice dropped VND50 to VND9,200-VND9,350 per kilogram. The price of dried bran decreased by VND100 ranging between VND5,550-VND5,650 per kilogram.
In the domestic market, rice prices in many localities remained stable, transactions were slow.
The Ministry of Agriculture and Environment reported a slowdown in rice trading in Hau Giang and An Giang provinces, with reduced buyer demand and sluggish transactions.
In Can Tho City, farmers managed to keep rice prices at a stable level, however, the volume of market transactions remained low, indicating a potential slowdown in trading.
Meanwhile, ST25 rice prices decreased sharply in supermarkets.
In late February, numerous supermarket chains lowered rice prices in response to declining export prices.
The Bach Hoa Xanh system has lowered the price of ST25 rice under the Vua Gao brand from VND190,000 to VND145,000 per 5kg bag. Likewise, ST25 rice under the Neptune brand has been reduced from VND190,000 to VND135,000 per 5kg bag. Meanwhile, at the Co.opmart system, the price of specialty ST25 rice produced under the rice-shrimp model has dropped from VND252,000 to VND165,000 per 5kg bag. Additionally, some special ST25 products have been reduced from VND222,000 to VND154,000 per bag.
Other types of rice also have a common reduction of VND5,000-VND7,000 a kg. Some popular rice varieties are now priced below VND100,000 per 5kg bag, the lowest being VND89,900 for 5kg bag (equivalent to VND17,980 a kg).
According to many businesses in the rice industry, the export price of rice has dropped sharply, and as provinces in the Mekong Delta enter the winter-spring harvest season, businesses have had no choice but to lower domestic retail prices in line with input material costs.
This initiative allows businesses to free up warehouse space and recoup capital, enabling them to increase their procurement of new-harvest rice from farmers.
According to the Vietnam Food Association (VFA), Vietnam's rice export prices have risen from the lowest position globally. Vietnam's 5 percent broken rice is now priced at $394 per ton, surpassing Pakistan's $384 per ton. Meanwhile, Thailand's rice remains the highest at $415 per ton, and India's is priced at $406 per ton.
