VFA lowers rice export target for 2013
The Vietnam Food Association (VFA) has lowered its rice export target for 2013 to between 7 - 7.2 million tonnes from 7.5 million with earnings of US$3 billion due to low export volume and falling prices.
For this month alone, the association estimated exports will be 650,000 tonnes, 100,000 tonnes below the set target. It forecast that the exports will stand at 1.8 million tonnes by the end of the third quarter, 230,000 tonnes lower than previously planned.
The association's chairman, Truong Thanh Phong, said the export market has faced difficulties as supply outstripped demand, while rivals from Thailand implemented generous price subsidies for farmers and India's export volume rallied.
Phong said the market has seen fierce competition as rice prices in Thailand, India and Pakistan have fallen, bringing them closer to those of Vietnam, making it hard for the country to export to these markets due to transport costs.
The Ministry of Industry and Trade said countries such as Thailand, India and China use a large amount of their State budgets to purchase rice at high prices, while others take advantage of natural conditions, land and climate to produce high quality rice to improve competitiveness.
For example, India, the world's second largest rice producer, strongly supports its market while Myanmar, Cambodia and Pakistan have also made efforts to raise export volumes. Importers have adjusted policies by increasing the food supply themselves, reducing inventories and carefully considering exporters.
VFA Vice Chairman Pham Van Bay said Vietnam's rice exports have seen shortcomings as its quality is not highly valued in the world market and the country lacks a well-known rice brand. He also said exporters lack clear, long-term strategies for their exports as well as market expansion.
Under the ministry's plan, Vietnam will have just 150 rice exporters by 2015 to establish large production zones for in-depth business strategies.