Shrinking demand hits Vietnam rice

Vietnam expects rice exports this year to drop due to plunging demand in Southeast Asian markets and is bracing for stiff competition from other exporters including Thailand next year.

Huynh Minh Hue, the general secretary of the Vietnam Food Association, said rice exports would be down to 6.6 million tonnes by the end of this year due to decreasing demands from its main customers in Southeast Asia - Indonesia, the Philippines and Malaysia, the Vietnam News reported on Thursday.

Vietnam has targetted to export 6.7 million tonnes of rice this year

Indonesia did not buy at all while the Philippines and Malaysia reduced imports, he was quoted as saying.

The average export price of the Vietnamese rice was US$430.89 a tonne, down $14.50 from last year.

He blamed the situation on the fall in demand in some traditional markets in the second half of the year.

Indonesia did not buy at all while the Philippines and Malaysia reduced imports, he said.

The VFA warned of rising competition next year from lower Thai rice prices and supplies from other rice producing countries, which could dampen global prices.

Mr Hue pinpointed Thailand as a competitor as the kingdom could dump white and fragant rice on the markets.

The VFA continued to keep its next year's forecast on rice exports at 6.5-7 million tonnes.

Share your thoughts

Discussion 1 : 20/12/2013 at 05:44 AM
I really shouldn't get mad at Thailand for their rice price support schemes. America, Japan & the EU often subsidize their farmers NOT to plant a crop based on market projections so as not to depress prices too much. The main difference being that THOSE are developed economies while Thailand's is not. from iPhone application.
Discussion 2 : 19/12/2013 at 10:06 PM
There seems to be a huge surplus of rice worldwide. Maybe a new scheme of paying the farmers for NOT growing rice will help the Thaksin/Yingluck corruption machine.
Discussion 3 : 19/12/2013 at 08:54 PM
Sounds ominous for the Commerce Ministry rice sales next year!
Discussion 4 : 19/12/2013 at 08:52 PM
But unlike Thailand they anticipated this and have been diversifying their agro sector

Back to top

More From Bangkokpost.com