Rice prices in the region increased by VND200-300 per kilo in late November, according to the Vietnam Food Association (Vietfood).

A kilo of IR 50404 rice now costs VND4,700-5,000 (about US$0.28) in Tien Giang Province’s Ba Dac Market, one of the region’s major rice wholesale markets. In Long An Province, the same kind of rice is selling for the same price. It is estimated that 1,000 tonnes of rice are sold daily in both provinces.

The cost of a kilo of 5 percent broken rice stands at VND5,600-5,900.

The price of paddy rice has risen to VND3,000 per kilo. Prices are higher in Dong Thap and Soc Trang provinces, at roughly VND3,400-3,500 per kilo.

Production price hikes have left farmers unwilling to sell rice grain.

Pham Minh So from the Song Hau Food Company said his company’s branch in the Can Tho Province’s Cai Rang District only bought15-20 tonnes of rice a day. Its warehouse has a total capacity of over 2,000 tonnes.

The Ministry of Agriculture and Rural Development has forecast this year’s rice yield to reach 38.5 million tonnes, up more than 2.6 million tonnes over last year-despite natural disasters.

According to Vietfood, Vietnam exported nearly 262,000 tonnes of rice worth US$120.2 million in November. Total rice exports in the first 11 months of the year is 4.2 million tonnes, worth US$2.46 billion.