Rice market shaking

Rice prices at some agencies in Hai Duong province have increased by 2,000 – 3,000 VND/ kg compared to about one month ago due to the influence of domestic rice prices.

Vietnam has boosted rice export since several major rice exporting countries like India and the United Arab Emirates banned the export of rice, making traders and businesses purchase rice in bulk for export, dragging prices up.

Vinafood I JSC. in Hai Duong city provides the market with more than 300 tons of rice each month, according to the company director Nguyen Duc Hung.

“Our business has been somewhat affected by sharp rises in rice prices. Some partners in the South required us to buy rice at the increased market price, while some others refused delivery and returned advanced payments,” said Hung.

As a result, the company had to quickly find new partners to deliver goods to its customers on schedule even at a loss.

“Rice prices have never suddenly and constantly skyrocketed like this while we still have to keep prices as contracted, forcing us to cover losses,” said Nguyen Thi Huyen, Deputy Director of Hung Huyen Rice Co., Ltd. in Binh Giang district, which specializes in buying, husking, and reselling rice.

Higher rice prices have also directly affected input costs of facilities making products from rice.

Do Thi Lanh’s Q5 noodle production facility in Thanh Mien district uses about two tons of rice each day to make noodles. Though the price of Q5 rice has increased from 8,000 VND/ kg to 9,000 VND/ kg, Lanh still tries to keep the prices of her products unchanged.

Hai Duong’s rice output is about 667,000 tons/ year, enough to serve the province’s demand and supply some neighboring localities.

The current supply of rice in Hai Duong is still secure thanks to an abundant stock. However, the provincial rice market is forecast to see further fluctuations in the coming time under the impact of domestic and international markets.

The Ministry of Industry and Trade issued Directive No. 07/CT-BCT dated August 15 on strengthening market information, trade promotion, extension of rice export markets, and market stabilization in the current period.

The provincial Market Management Department will base itself on the directive to intensify inspection of rice trading facilities in the province to control supply sources and prices and prevent hoarding and unreasonable pricing of rice products.

HUYEN TRANG