Vietnam rice exports up 40 per cent

Vietnamese rice exports over the first nine months of 2009 rose 40 per cent over the same period last year, thanks to ample supplies and rising global demand, the Vietnam Food Association (VFA) said Tuesday. VFA statistician Nguyen Vu Huynh Thuc said the country exported 4.97 million tons, up 1.42 million tons over the first three quarters of 2008. But the value of exports declined 6.2 per cent, or 135 million dollars, due to lower prices.

Exports for September hit 401,000 tons, valued at 149 million dollars, compared with 342,000 tons and 221 million dollars in September 2008.

The government initially set an export target of 4.5 to 5 million tons for 2009, but decided in June to raise it to 6 million tons due to a bumper spring-winter crop.

Typhoon Ketsana last week flooded over 38,000 hectares of paddy in central Vietnam, destroying an estimated 100,000 tons of rice.

But Agriculture Ministry official Phan Huy Thong said the flooding would have little effect on rice exports, though it will hurt farmers in the affected regions.

VFA Deputy Chairman Pham Van Bay said world demand is trending upwards as the year ends, and exports would likely meet the target of 6 million tons.

Vietnamese 5-per-cent broken rice is selling on world markets at 400 dollars per ton, significantly lower than last year.

On September 22 Prime Minister Nguyen Tan Dung directed the VFA to buy 0.5 million tons of rice over two months to stabilize prices for farmers. The government will extend no-interest loans to companies buying the rice.

The Philippines is Vietnam's largest rice customer for 2009, having ordered 1.5 million tons.

In 2008, Vietnam exported 4.6 million tons of rice, earning 2.9 billion dollars. That was double the previous year's earnings, due to high global prices that hit 900 dollars per ton in May.