Vietnam to ban rice export for some months

I have just heard the following: Vietnamese will start banning their export of white rice from October shipment onward. Until when I'm not sure. At least till the end of this year, supposedbly.

Egypt cuts rice crop area by nearly half

Egypt cut by almost half the amount of land it used to sow rice in 2010 versus the previous year, saving the country 5-6 billion cubic metres of water, the official state news agency MENA said on Thursday. The amount of land on which rice was grown was reduced to 1.2 million feddans (1.2 million acres) from 2.2 million last year, MENA said, citing the Water Resources and Irrigation Minister Mohamed Nasreddin Allam. Egypt, the Arab world's most populous nation, wants to reduce its domestic production of the water-intensive crop. Bread is the main staple for most Egyptians, and Egypt imports more than half its wheat needs. An official was quoted as saying this month that Egypt wanted to achieve 70 percent wheat sufficiency. But rice is still a popular staple food. Climate change threatens a fragile farm sector in Egypt and population growth may outstrip water resources as early as 2017. Under a 1929 agreement with the Nile Basin countries, Egypt is entitled to 55.5 billion cubic metres a year, the lion's share of the Nile's total flow of around 84 billion cubic metres. The North African country has been in dispute with other Nile Basin countries eager for a greater share of river water to support power generation projects and agricultural growth.

Pakistan Non-basmati rice production to fall almost 20%

Production of non-basmati rice will fall by about 15 to 20 per cent from previous estimates, estimate rice exporters. “We had expected nonbasmati rice cultivation to yield about 4.5 million tons this year but due to flooding in various parts of Sindh, where much of this kind of rice is grown, we are now expecting up to 800,000 tons to be lost,” said Chairman of Rice Exporters Association of Pakistan (Reap), Malik Jahangir, on Wednesday. Jahangir explained that Larkana, Jacobabad, Shikarpur and Dadu districts are the main areas in Sindh where non-basmati rice is cultivated. Large parts of these districts have been flooded in recent days. Irrigation officials have also warned that fresh flooding may also be witnessed in many of these areas. Many of the crops that were cultivated in these areas have been destroyed. Agricultural experts also fear that gushing waters have washed away the nutrient- rich top soil of many agricultural areas. They say that farmers may not be able to achieve high yields and in some of the worst affected areas, cultivate crops at all for the next few years. Cultivation of high-quality basmati rice has also been affected although not as badly as non-basmati varieties. “Most of the areas where basmati is grown are in Punjab and have not been affected significantly by the floods,” commented the Reap chairman. Meanwhile, prices of rice have increased in local markets during Ramazan. Supplies have been affected due to flooding, Reap officials said, adding that transportation from fields to mills and then to markets is difficult and more costly because of the flooding. Jahangir asserted that because of supply constraints, the price of basmati rice has increased by Rs10 to Rs70 per kilogramme in wholesale markets while rates of nonbasmati rice have risen by Rs5 per kilogramme. Last month, the United Nation’s Food and Agriculture Organisation (FAO) issued a report that said Pakistan would lead an increase in global rice exports. The FAO report had also predicted the country’s paddy production for 2010 to be about 10.2 million tons, 0.1 million tons higher than the previous year. The report had cited that non-basmati varieties of rice are leading export growth for the country. This means that downgraded estimates for production of non-basmati rice will also likely hurt the country’s export prospects. Experts point out that earlier in the year, non-availability of water had been a cause of concern for farmers. They say that while production of basmati rice will probably not suffer much, achieving record exports may not be a feat that can be accomplished, at least not this year.

India firm makes low offer in Bangladesh rice tender

Indian firm M. Sons Group made the lowest offer of $477.51 a tonne, including cost and freight, in a Bangladesh tender to buy 30,000 tonnes of non-basmati parboiled rice that opened on Thursday, a food official said. The tender was issued by the state grains buyer early this month, and shipment is within 40 days of signing the contract, which will take place after the cabinet committee's approval. The offer was $33.51 per tonne higher than the country's last tender that opened last week, in which the same firm submitted the lowest offer of $444 a tonne to supply a similar quantity of parboiled rice. The highest offer was $575 a tonne, made by the Thai firm Daow, the food official said. The government has doubled its planned rice imports for this year to 600,000 tonnes after wheat prices spiked due to export curbs in the drought-ravaged Black Sea region. Deals to ship around 345,000 tonnes of Black Sea wheat to Bangladesh have been cancelled so far. Chicago wheat futures hit a two-year high after Russia barred shipments in early August, and since then prices have fallen by more than 20 percent but are still well above levels before the surge. On Thursday, the Bangladesh state grains buyer issued one new tender to import 30,000 tonnes of parboiled rice and another to buy 50,000 tonnes of wheat, both with an offer deadline of Aug. 30. Bangladesh, the world's fourth-biggest rice producer, harvested a record high rice crop of more than 34.45 million tonnes in the year to June, but the government failed to procure enough rice locally. The government's food reserves have come under added pressure as it has started selling rice at subsidised rates to help the poor during the Muslim fasting month Ramadan and to contain food inflation, now running at nearly 11 percent. Besides issuing tenders, the government is also trying to buy grains through state-to-state deals to build buffer stocks, which stand at 700,000 tonnes against a target of 1.5 million tonnes. Bangladesh has signed a contract to import 100,000 tonnes of 15 percent broken rice with Vietnam's top rice exporter, Vinafood 2, at $389 per tonne, while negotiating to buy more rice from there, food officials said. India also has allowed the export of 300,000 tonnes of non-basmati rice and 200,000 tonnes of wheat to Bangladesh. Food security is a major concern for the government as nearly 38 percent of the country's population of more than 150 million still live on less $1 a day.

Thailand not worried by Vietnam Dong devaluation

The devaluation of Vietnam’s dong by another two per cent early this week will not have any appreciable impact on Thailand’s rice exports, Commerce Minister Porntiva Nakasai said on Thursday. “Vietnam is a major competitor for rice exports, but our neighbour now has no more rice for sale,” Mrs Porntiva said. The ministry would keep a close watch on the situation, particularly on the value of baht. The private sector had repeatedly expressed concern about its appreciation, she said. The private sector was worried that the baht might strengthens to 30 to the US dollar, a rise of seven to eight per cent. Businesses warned that such an appreciation would affect the country’s exports in the fourth quarter of the year, she said. The minister was confident that the Bank of Thailand was capable of keeping the baht value at a suitable level and that exports would grow by 20 per cent this year, as targeted. Dusit Nonthanakorn, chairman of the Thai Chamber of Commerce, said there is a possibility Vietnam would again devalue the dong the near future, although this would not have much impact on Thailand’s exports. “But the government must keep a close watch on the situation and try to stabilise the baht value at levels in line with the currencies of other Asian countries. By doing this, manufacturers’ trade competitiveness will not suffer,” Mr Dusit said.

Importation needed to solve Philippines' rice shortage

The Department of Agriculture said yesterday it is bent on importing rice to solve a shortage despite President Benigno Simeon Aquino III’s order to stop it, a report of the Philippine News Agency said. “We need to import rice badly because the grain output slid by 10.24 percent for the first semester,” Agriculture Secretary Proceso Alcala told reporters at the DA Central Office in Quezon City. Alcala said he is worried because if the wet cropping season does not produce much of the staple, the country may have a shortage and need new importations. The DA chief said the harvest was down to 6.62 million metric tons (MTs), down by 750,000 MTs from the output of 7.37 million MTs for the first semester of 2009. He admitted that unless the weather becomes kinder and if the intervention measures set in motion by the DA will not suffice, the country will have to import rice anew. However, he stressed the volume would not be in the vicinity of the 2.45 million MTs imported by the previous administration. The Philippines did not import rice in 1991, 1992, and 1994 but foreign purchases escalated from 2001 onwards. Alcala stressed El Niño was the culprit and explained the prolonged dry season was bad for rice, which is dependent on adequate rainfall and irrigation water to increase yield.

Chinese Demand Hikes Vietnam Prices

Vietnamese deputy Agriculture Minister Nguyen Thanh Bien has revealed that bulk orders for rice by Chinese traders are driving up rice prices in Vietnam. According to the Vietnam Food Association (VFA), Chinese traders have bought some 600,000 MT of Vietnamese rice since April. In the same period, the price of paddy rice rose from 3,500 dong (0.19 dollars) to 4,600 dong (0.25 dollars) per kilogram. China is not usually one of the major importers of Vietnamese rice, and rarely buys any later than May, Vietnamese media said. The higher Chinese demand is not expected to affect Vietnamese food security. The Ministry of Agriculture and Rural Development estimates the country will harvest some 39 million MT of paddy rice this year, and can export between 7.2 and 7.4 million MT of processed rice.

Bangladesh Seeking To Buy Vietnamese Rice

According to local media reports, the government of Bangladesh is sending an official delegation to Vietnam to lock-in supplies of rice in an attempt to offset defaults in wheat imports.

Iraq Issues Tender To Buy 30,000 MT rice

The Grain Board of Iraq has issued a tender to buy at least 30,000 MT of rice of any origin making it the fifth rice tender this year. Bidders are directed to submit heir offers latest by Aug. 15, and bids would be valid until Aug. 22. The last time Baghdad issued a rice tender was in July when it bought 150,000 MT. Some 120,000 MT were Thai rice purchased at $488.85 a ton and the remaining 30,000 MT were purchased from an Indian company called LMJ at $444/ton. The tender originally asked for 30,000 MT rice.

Insider report on Pakistan rice and flooding situation

This comes from one of my connections in Pakistan. Pakistan is facing severe rains and flood. The Indus river passing through the centre of the country has damaged communication means, properties and crops specially in province of Punjab and Sind, the rice growing areas. Further rains have been forecasted and will be continued till 1st week of September. Cotton, wheat and Pulses crops have damaged / destroyed. It is expected in the coming months prices of essential items will further rise while during the last 2 weeks prices of local rice market have increased by $ 30 - 40 PMT. The water level in Punjab have started falling and it is expected the situation will be clear within next 10days. Currently the big wave of flood water is passing through the Sind province reported some rice growing area Irri-9 and Irr-6 have also been effected by the flood water. The situation will be clear after falling of water level. NEWS FROM NET Pakistan Floods Destroy Crops Worth Billions By news desk on August 13,2010 Flood surges triggered by unprecedented monsoon rains have swept devastating low-lying areas of Punjab and Sindh provinces, the densely populated economic and agricultural heartland of Pakistan with estimates of around half a million MT each of wheat and sugar crops been totally destroyed. Pakistan's Finance Ministry said this week the floods would hit growth and this year's gross domestic product growth target of 4.5 percent would be missed, though it was not clear by how much. Growth was 4.1 percent in the last fiscal year. On damage to the rice crop, the farmers' association put the losses at about 200,000 MT of rice, an estimate also supported by a Singapore-based trading company. The United Nation's Food and Agricultural Organization (FAO) has also warned of serious threats to the livelihoods and food security of millions. The U.N. has started a $460 million appeal for aid on Aug. 11 and the U.S. has pledged $55 million in assistance. The U.K. allocated 16.8 million pounds ($26 million) and earmarked up to 31.3 million pounds for relief aid

Facts about Pakistan's key crops after floods

Massive floods in Pakistan that killed up to 1,600 people also destroyed crops over an estimated area of more than 1.6 million acres (647,497 hectares), farmers and industry officials say. The government says exact damage to crops is yet to be assessed. More damage is expected as the floods head southward. Following are some facts about the main crops. WHEAT STOCKS AND PROSPECTS FOR EXPORT Wheat stocks soared this year after a bumper crop of 23.86 million tonnes in 2009/10, and a carryover of 4.2 million tonnes from the previous crop when Pakistan harvested 24 million tonnes. In April, the government said after setting aside 1 million tonnes for strategic reserves, it still had a 2 million tonnes surplus which would be exported. But it had held back because of low prices in the international market before a recent rally. The floods have damaged up to 600,000 tonnes of wheat stocks, according to initial estimates. Traders say the country, Asia's third-largest wheat producer, still has ample stocks for export. Food ministry officials said this month wheat export was still under consideration, but the government was unlikely to make a decision until it had a complete assessment about the losses and prospects of the next crop. Pakistan banned wheat exports in 2007 because of shortages and high prices in the domestic market. COTTON IMPORTS TO GO UP Pakistan in April hoped to produce 14 million bales of cotton in the 2010/11 season, compared with about 12.7 million bales the previous financial year (July-June), when the country had to import about 2 million bales. This target is unachieveable now. The floods have damaged up to 2 million bales over an area of 700,000 acres (283,279 hectares), and traders say Pakistan will have to import up to 3 million bales to make up for the shortfall. A Pakistani cotton bale weighs 170 kg. Traders said buying will be mainly from the United States and India. Despite being the world's fourth biggest cotton producer, Pakistan annually imports between 1.5 million and 2 million bales to feed its textile industry. SUGAR DAMAGE BEING ASSESSED, IMPORTS LIKELY Pakistan has made a series of purchases in the international market this year following estimates its 2009/10 crop has produced little more than 3 million tonnes of white sugar against an annual demand of 4.2 million tonnes. Pakistan this month bought a total of 525,000 tonnes of sugar in two separate contracts. The next crop, due in November, was expected to produce about 3.8 million tonnes of white sugar before the floods struck. A farmer association official said last week the output of refined sugar would fall by 500,000 tonnes. A Food Ministry official said the extent of damage to the crop was still being assessed and it was centred in a relatively small area of about 100,000 acres (40,468 hectare) -- meaning less damage than the above estimate. Millers say Pakistan will need to import only if production falls below 3.6 million tonnes. SMALLER SURPLUS FOR RICE EXPORTS The floods have affected the rice crop over an estimated area of about 200,000 acres (80,937 hectare), which means an expected loss of about 200,000 tonnes of milled rice. A rice industry trader said the loss could be up to 15 percent of the total output target of 6 million tonnes the government had set for this year. Less output means Pakistan will have a smaller surplus for exports. Pakistan had a bumper crop of 6.7 million tonnes of milled rice in 2009/10 and exported about 4.5 million tonnes, traders say. But a U.S. Department of Agriculture attache in Pakistan said in a report last week that the country exported 3.75 million tonnes of rice in 2009/10. Attache reports are not official USDA data.Harvest of non-basmati rice begins in late September and the basmati harvest a month later.

India domestic rice price

Pusa-1121 (steam) ruled at Rs 5,000-5,150 a quintal. Pusa-1121 (sela) was quoted at Rs 4,000-4,050; while Pusa-1121 (raw) was quoted at Rs 5,000-5,150. Pusa (sela) variety was quoted at Rs 3,050 a quintal and Pusa (raw) ruled at around Rs 3,900. Basmati Sela ruled at around Rs 6,000 a quintal, while basmati raw was quoted at Rs 7,100. The Sharbati sela variety ruled at around Rs 2,800 and Sharbati steam was quoted at Rs 2,900-3,000. Permal (PR) sela was quoted at Rs 2,000-2,150; PR (raw) at Rs 2,060-2,250; and PR (steam) at Rs 2,210-2,350. Brokens such as Tibar ruled at Rs 3,450 a quintal, Dubar at Rs 2,800, and Mongra at Rs 2,000.

Rice Crop to Reach Record as India Farmers Boost Sowing to Counter Drought

India, the world’s second-biggest rice grower, may have a record harvest this year as increased planting offset drought in the east of the country. Production may total 100 million metric tons in the year ending June 2011, compared with 89.3 million tons a year ago, said Vijay Setia, president of All India Rice Exporters’ Association. Output was a record 99.2 million tons in the year ended June 30, 2009, according to the farm ministry. “It will be a bumper crop this year as overall rains have been good and the government has distributed hybrid and good quality seeds,” Setia said in a phone interview from the northern city of Karnal. A record harvest may prompt the government to lift a two- year-old restriction on exports at a time when global demand is expected to increase as surging wheat prices encourage buyers to switch to rice. Rice exports from Pakistan, the world’s third- largest shipper, are expected to slump after a flooding damaged crops in areas accounting for 90 percent of agricultural output. Indian farmers had planted 27.4 million hectares of rice (67.7 million acres) as of Aug. 13, compared with 25.1 million hectares a year earlier, the farm ministry said last week. The condition of the crop in 16 out of the 19 major rice-growing states is “normal,” the ministry said. Crop conditions are “poor” in Bihar and “satisfactory” in Kerala and West Bengal, the biggest grower, it said. “According to preliminary reports we expect a 75 percent loss in rice production,” Ashok Kumar Sinha, the Bihar state government’s agriculture production commissioner, said in an interview yesterday. “A real assessment will be made in a week as the dry spell is still continuing.” The harvest may not be affected by drought in Bihar, Jharkhand, West Bengal and eastern parts of Uttar Pradesh, Farm Minister Sharad Pawar said in New Delhi yesterday. Rainfall in the June-September monsoon, the main source of irrigation for the country’s 235 million farmers, was 4 percent lower than average as of yesterday, according to the state-owned weather bureau. Rain in Bihar was 29 percent lower than normal, and 31 percent deficient in West Bengal. The crop in West Bengal will be lower than the 14.8 million tons last year because of drought in 11 districts, Narendranath Dey, farm minister of the state, said by phone today. Food grain production in Jharkhand may be less than last year’s 2.2 million tons, said Deepak Singh, agriculture director with the Jharkhand government. Rice accounts for 85 percent to 90 percent of the grains in the state, he said. Rice futures in Chicago last month lost their premium over wheat for the first time since March 2008 as the worst drought in Russia in at least 50 years, dry conditions in Europe and rains in Canada curbed global wheat supply and pushed prices to the highest in almost two years. The price climbed to $16.27 per 100 pounds last December on concern that India may become a net importer for the first time in more than two decades and as the Philippines boosted imports after storm destroyed crops. Rice for November delivery traded at $11.17 at 5:47 p.m. Singapore time. Almost 700,000 hectares of standing crops in Pakistan are either underwater or destroyed by floods, the United Nations’ Food & Agriculture Organization said on Aug. 11. Pakistan was expected to export 3.8 million tons of rice this year, more than 10 percent of the estimated global shipments of 30.4 million tons, according to the FAO, which made the forecast in July, before the flooding. India won’t lift a ban on exports as it needs grains for supply to the poor at subsidized rates, Pawar said on Aug. 10. There are “prospects” to export wheat after a recent surge in global prices, Trade Secretary Rahul Khullar told reporters in New Delhi today. The government banned exports of all grades of rice except the aromatic Basmati variety in April 2008, to increase domestic supplies. The restriction remains in place as a drought in 2009 pared production by 10 percent in the year ended June 30. The country’s rice reserves on July 1 were 24.26 million tons, more than double the normal buffer of 9.8 million tons, according to data compiled by the state-run Food Corp. of India.

Thailand should release rice stocks

Chookiat Ophaswongse, honorary president of the Thai Rice Exporters Association, said yesterday that Vietnam, which is a major rival, is expected to export about 3.2 million tonnes of rice in the second half of the year, down from 4 million tonnes in the first half. "The Thai government must take this opportunity to release rice, as there's a lower supply in the market," he said. The sales should be in small lots to minimise any impact on the market, he said. The price of rice in the world market is expected to climb after Vietnam hiked its export price because of lower production. Vietnam recently sold 200,000 tonnes of white rice to Bangladesh, while China is interested in purchasing 600,000 tonnes, leading the price for Vietnamese rice to bulge from US$350 a tonne last month to $390 [Bt12,400] this month. Manat Soiploy, director-general of the Foreign Trade Department, said the government planned to dispose of some of its rice inventory soon, but could not reveal details as that could panic the market. "The ministry has considered releasing rice in many channels. The method will ensure that the market price will not be affected sharply, as the government is one of the major rice holders," he said. Thailand is expected to export about 8.5 million tonnes of rice this year after shipping out about 4 million tonnes in the first half, he said.

Ample rice supply boosts Vietnam exports beyond annual target

Vietnam may ship 7 million tons of rice this year, 17 percent higher than the annual target, as there is ample supply of the grain, an agriculture official said. The country has harvested more than 26 million tons of paddy so far this year and is set to reap another 13 million tons in the remaining months, Nguyen Tri Ngoc, director of the Cultivation Department at the agriculture ministry, told the Vietnam Economic Times Monday. He said there would be sufficient rice for the domestic market even if 6.5-7 million tons of rice were exported this year. Local food companies have stocked around 1.4 million tons of rice, he added. Vietnam, the world’s second largest rice exporter after Thailand, had planned to export 6 million tons of the grain this year. So far, more than 4 million tons valued at around $2 billion have been shipped, according to official figures. Ngoc said there is no need to worry about rice supplies in Vietnam now, but the country is short on other grains used as animal feed. Vietnam still has to import huge amounts of corn and soya bean meal, he said.

Philippines may import rice this year

The government might have to import rice as the dry spell caused by the El Niño phenomenon reduced domestic rice production by about 10 percent in the first half of the year, the Department of Agriculture (DA) said Monday. Agriculture Secretary Proceso Alcala said 6.6-million metric tons of rice were produced in the first half of 2010 compared to the 7.3-million MT produced in the same period last year. The country may have to import rice this year due to the dismal rice output, he said. “We are studying this thoroughly, maybe the output of the first semester of 2011 will cover the decline. Within the next 10 days, we will make a decision on whether we need to import,” Alcala said in a press briefing Monday. According to DA officials, the drought delayed the planting of rice in the provinces, which led to the production slump. With the losses in the first semester of 2010, Alcala said it would be impossible to reach the rice production target of 17.4-million MT for this year. “For sure, we won’t be able to meet (it),” he said. But should the DA call for rice imports, it would have to be just half of the 2010 imports, Alcala said. “The projection is that by 2013, we will be sufficient. We might still import in 2011 and 2012, but it won’t be as much as in 2010,” he said. The Philippines—already the world’s top rice importer, has bought as much as 2.47-million MT of the commodity to fill its requirements for 2010. The importation of rice by the Arroyo administration in the past few years was criticized recently by some Aquino government officials who said it was a scam and a source of corruption. Much of the imported rice has been found undistributed in National Food Authority (NFA) warehouses. To address the glut in imported rice, NFA chief Lito Banayo said early this month the country would not issue tenders for the rest of the year. According to DA statistics, total agricultural production contracted by 2.59 percent, a disappointing result compared to 2009’s 1.49-percent growth. Of the four agricultural sectors—the other three are livestock, poultry and fisheries—the DA said the crops sector suffered the steepest decline at 6.72 percent. In its semester report, the DA said palay production was down by 10.24 percent, while corn declined by 24.59 percent.

China Floods Boost Pests, Threaten Rice Crops

China’s mid-season and late-season rice crops face increasing threats from pests after widespread floods this summer made conditions ideal for insects to breed, the Ministry of Agriculture said today. Twice the amount of pests as last year were detected among crops in provinces from southwestern Guizhou to eastern Zhejiang, the ministry said in a statement on its website. Delayed planting and hotter weather in August and September will also boost breeding, it said, without giving the extent of the damage. China’s early-season rice harvest may decrease by 2.4 percent from last year, or 800,000 metric tons, because of floods, state-owned China National Grain & Oils Information forecast Aug. 4. Total output may still gain 0.8 percent to 196.6 million tons as mid-season and late-season crops are projected to more than offset the losses, it said. The ministry has started a campaign to save crops after the State Council last week urged main farming areas to boost production, the statement said. The government allocated 155 million yuan ($23 million) in emergency funding to promote measures including the proper application of pesticide chemicals, the statement said. Early, mid and late-season crops make up 16.5 percent, 65 percent and 18.5 percent of the harvest, respectively, according to the grain center report. Traders in Vietnam, the second-biggest rice exporter, may have “unofficially” shipped about 600,000 tons to China this year across the nation’s northern border, according to the Vietnam Food Association. Most of the shipments were made from April to July amid signs of increased demand from China, Huynh Minh Hue, general- secretary of the association, said Aug. 16 by phone. Through official channels, Vietnam has shipped less than 100,000 tons to China this year, Hue said. China’s rice output may fall as much as 7 percent this year after floods, Li Qiang, managing director at Shanghai JC Intelligence Co., said this month.

Rising domestic prices in Vietnam threaten rice exports

Rice exporters are facing difficulties negotiating export prices due to domestic rice price increases, said the Viet Nam Food Association. The association said this increase had made farmers happy but brought concerns to exporters. The exporters would have more difficulty in confirming export contracts because they could not compete with rival countries. Over the last two weeks, rice prices have risen by VND500-1,000 per kilo to VND4,100-4,400 for low-quality rice, VND4,800 per kilo for medium-quality rice, and VND5,500 per kilo for high-quality rice. Increasing demand from China was a reason for the increase in domestic rice prices, the association said. If prices remain as they currently are, exporters would face losses based on the export contracts already signed, it said. The Ministry of Industry and Trade said exporters had created the problem for themselves as they had not correctly forecast market movements and some had deliberately under-cut rival companies with unrealistically low prices to win export contracts. The ministry said the exporters needed to unite to keep rice export prices at a high level to ensure the best interest of both exporters and farmers. Enterprises are continuing to purchase rice from farmers, according to a Government programme to stockpile an million-tonne temporary rice reserve. Forty-eight VFA member-enterprises have so far purchased 550,000 tonne. Exporters have signed contracts until the year-end to export 6.2 million tonnes of rice, the association said. Last month, they signed contracts to export 178,000 tonnes to Bangladesh. They expected this month to sign contracts for 220,000 tonnes of rice. Vietnamese exporters would also deliver by the end of this year 51,300 tonnes of rice according to already-signed contracts with the Philippines. In the first seven months of this year, the country exported a total of 4.1 million tonnes of rice, earning US$2.01 billion. This marked a year-on-year decline of 2.5 per cent in volume but a year-on-year increase of 3.4 per cent in value. A bright spot Tien Giang Food Co exported more than 150,000 tonnes of rice from January to August 16, earning a total turnover of US$41 million and meeting 60 per cent of this year’s target. Nguyen Quoc Truc, deputy director of the company, said the average export price was more than $400 for each 5 per cent broken-rice tonne, an increase of $70 compared to the same period of last year. Besides the traditional markets of the Philippines, Indonesia and Bangladesh, the company has also exported rice to the US. The company aims to meet this year’s export target of 250,000 tonnes of rice, and has invested more than VND94 billion ($4.9 million) to build warehouses for rice storage and agricultural product preservation for exports. Ensuring supplies The Cuu Long (Mekong) Delta province of Bac Lieu will ensure enough rice supply for local consumption as well as fulfilment of export contracts until the end of the year, a local official has assured. Bac Lieu is now harvesting 55,000ha of summer-autumn rice crop with an output of five tonnes per ha. When the summer-autumn crop harvest is completed, the province will continue growing this year’s third rice crop on an area of 50,000ha. The province’s rice output will exceed local consumption demand and export contract commitments from now until the end of the year, local officials said. They warned farmers not to stock rice because current prices are high, explaining they could fluctuate when the Delta provinces entered peak harvest period for the summer-autumn crop at the end of this month.

Vietnam paddy rice price rising

The price of unhusked rice in the Mekong River Delta has continued to rise because of a sharp increase in both demand and the price of rice for export. Currently, traders buy unhusked rice at VND 4,200 per kilogramme in An Giang, and Dong Thap provinces, an increase of VND 400 – 500 per kilogramme compared to late July. Local farmers now gain a profit of VND 13 – 15 million per hectare. According to the Vietnam Food Association, enterprises have signed contracts to sell 6.2 million tonnes of rice so far.