Vietnamese rice export prices stay high on limited supply globally

The past week saw the 5% broken rice of Vietnam traded stably at around US$643/tonne, raising the eight-month rice export price average to US$542/tonne, marking a year-on-year rise of 11.5%. This is the highest average export price Vietnam has recorded in history since it started shipping its rice abroad more than 30 years ago.

The Ministry of Agriculture and Rural Development reported that rice exports brought in US$3.17 billion in August 2023 alone, an increase of 36.1% over the same period last year.

For more than a month since India and some other countries suspended rice exports, rice prices have increased sharply, greatly impacting the world rice market. The prices of rice have also skyrocketed and continuously broken records in Vietnam, with the 5% broken rice price increasing by an additional US$25/tonne compared to the pre-ban period.

Statistics unveiled by the Vietnam Food Association (VFA) showed that, in the trading session on August 31, the price of Vietnam’s 5% broken rice reached US$643 per tonne, up 20.6% compared to the August 19 price and up 40.3% compared to the figure recorded in January 2023.

The export price of the 25% broken rice has also climbed from US$438/tonne in January to US$628/tonne on August 31, up 43.4%.

Among global rice exporters, Vietnam’s export prices of 5% broken and 25% broken rice remain the highest in the world. Their prices are US$10/tonne and US$63/tonne higher than Thailand’s similar products.

With an estimated rice export volume of 6 - 8 million tonnes a year, Vietnam is currently in the top three rice exporting countries in the world, just after India and Thailand. At some time, Vietnam even rose to second position in the world.

Currently, Vietnamese rice is exported to 150 countries and territories around the world. As of mid-August 2023, the Philippines, China and Indonesia were Vietnam’s three largest rice export markets with market shares of 40.3%, 14% and 12.1% respectively.