Rice exports see difficulties due to oversupply

The Vietnam Food Association (VFA) on March 24 said that rice exports would continue facing difficulties because of surplus supply sources in rice export nations and Thailand’s boosted measures to clear their stocks, causing a competition in rice prices in the world.

Bac Lieu farmers harvest rice (Photo: SGGP)

That was revealed at a seminar on rice and seafood export conditions held by the Export Import Department under the Ministry of Industry and Trade in the Mekong Delta city of Can Tho.

According to VFA’s statistics, businesses have shipped 537,000 tons of rice from January 1 until March 19 bringing US$237 million, down 41.36 percent in volume and 40.52 percent in value over the same period last year.
Average export price was US$440.18 per ton in FOB (Free on Board) term, up US$6.21 over a year ago.
Total rice volume in export contracts was up 7 percent to reach 1.94 million tons as of March 19. Of these, 1.4 million tons have yet to be delivered.
Besides, businesses still have 1.4 million tons in stock waiting for exports.
The export value of other farm produce and seafood products was estimated at US$4.2 billion in the first quarter this year, a year on year reduction of 15.8 percent. This group of commodities accounts for 11.7 percent of total export items.

By Binh Dai – Translated by Hai Mien

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