The directive came following the complex developments of global food trade, as some countries banned and restricted rice exports, while others increased buying rice for their reserves. At the same time, the Black Sea grain deal expired and agricultural production was severely affected by extreme weather.

Illustrative image.

In recent days, rice export prices have climbed to new heights, with Vietnamese and Thai 5% broken rice surpassing 600 USD per tonne. In the first seven months of 2023, Vietnam exported 4.84 million tonnes of rice, worth 2.58 billion USD, up 29.6% from the same period last year.

It is forecast that the global demand for rice consumption and stockpiling rice will continue rising, leading to further changes in export prices in the time ahead. As such, functional agencies and localities need to work together to utilise export opportunities, increase incomes for farmers and profits for exporters, while ensuring strict national food security under all circumstances, avoiding illegal hoarding and profit-seeking activities, which could destabilise the market and affect the reputation of Vietnamese rice.

For domestic consumption, the Ministry of Agriculture and Rural Development (MARD) and the Ministry of Industry and Trade (MOIT) should calculate the appropriate rice reserve to prevent the shortage of rice in case of natural disasters and epidemics. According to the Department of Crop Production, this goal is attainable since Vietnam is expected to produce 43.2-43.3 million tonnes of rice in 2023. Such output will ensure national food security and the export goal of more than 7 million tonnes.

Furthermore, to stabilise the domestic rice market, traders need to strictly comply with maintaining the minimum circulation reserve level, actively monitor global rice trade developments and exchange information with the Vietnam Food Association to promptly report emerging issues to the relevant ministries and agencies.

For export, to capitalise on the opportunity to increase export volume and value in the new situation, the agricultural sector is planning to raise the rice cultivation area of the autumn-winter season from 650,000 hectares to 700,000 hectares to increase output. At the same time, the MARD is actively working on a project to develop one million hectares of high-quality rice in the Mekong Delta region to enhance the quality of exported rice.

Concerning rice trade promotion, the MOIT will collaborate with the relevant agencies to implement programmes to advertise Vietnamese rice following the new situation and tap into the preferences in the free trade agreements that Vietnam has signed effectively to diversify the export market.

Rice export prices reach 10-year high

The global decline of the rice supply and the impact of El Nino climate pattern have led to a sharp increase in the price of rice for export.

Vietnam farmers benefit from India's rice export ban

Farmers in the Mekong Delta, Vietnam's biggest rice production region, are selling at higher prices in the wake of an export halt imposed by India, the world's largest supplier.

Market diversification crucial for rice sector: Experts

Although Vietnamese rice has been exported to 150 countries and territories, markets for the product are mainly Asian countries and thus need to be diversified, according to experts.

Positive outlook for Vietnam’s rice exports

Vietnam’s rice exports witnessed decent growth in the first five months of 2023 in both established and new markets. It is forecast that rice export will continue growing in the coming months thanks to strong demand while global inventories have fallen to record lows.

Rice exports surge 54.5% in first four months

Vietnam earned 1.56 billion USD from shipping 2.95 million tonnes of rice abroad in the first four months of this year, increases of 54.5% and 43.6%, respectively, year-on-year.

Source: NDO