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Vietnam’s rice prices climb to historic peak in 2023

With estimated output of 43 million tons in 2023 and historic high export prices, Vietnamese farmers have made a high profit. Every $1,000 invested in each hectare of rice earned $3,000-3,500.

The General Department of Customs (GDC) reports that Vietnam had exported 7.9 million tons by December 15, worth $4.54 billion, a new record.

The rice demand continues to increase and countries continue to import rice, thus pushing rice prices up.

According to the Vietnam Food Association (VFA), a new rice price increase wave has begun. Thailand’s rice price increased by $58 per ton just within one month to $646 per ton, while Vietnam’s 5 percent broken rice price has been $663 per ton.

In Vietnam’s rice granaries, rice supply is no longer abundant, which has pushed rice prices up to unprecedented levels.

On December 7-14, the average paddy price at fields soared to VND9,000 per kilogram, a record high level. Normal rice in warehouses also saw prices increase to VND10,300 per kilogram, first-class while husked rice VND15,738 per kilogram, while 5 percent broken rice VND15,386, 15 percent broken rice VND15,150, and 25 percent broken rice VND14,580. 

The Ministry of Agriculture and Rural Development (MARD) has estimated that Vietnam’s rice total output may reach 43 million tons this year, while the export volume is estimated at 8 million tons and collected $4.6 billion.

The high export prices have brought high profits to farmers.

In northern provinces, farmer have two rice crops a year. The total cost is estimated at VND35.85 million per hectare per crop, up VND600,000 compared with 2022. Meanwhile, total revenue is 54.3 million per hectare per crop, up VND7.3 million, and profit is VND18.5 million, up VND6.64 million. With two crops, farmers can earn VND37 million per hectare this year.

With 2.245 million hectares of rice growing area, northern farmers can make a profit of VND83 trillion.

In Mekong Delta, farmers can make a profit of $2,000-2,500 per hectare, according to Nguyen Duy Thuan, CEO of Loc Troi Group. 

According to Vo Tong Xuan, a rice export, the continued rice price increases brings great opportunities to Vietnam, which has many short-term rice varieties of high quality and high yield. 

Meanwhile, irrigation works allow farmers to deal with drought and salinity intrusion, if they occur.

Xuan predicted that Vietnam’s rice export price may exceed $700 per ton in 2024, so Vietnam should consider cultivating four crops a year.

Le Thanh Hoa from the Ministry of Agriculture and Rural Development has cited sources as predicting that the world will lack 5 million tons of rice in 2024.

Tam An

https://vietnamnet.vn/en/vietnam-s-rice-prices-climb-to-historic-peak-in-2023-2232094.html QR Code

Published Date: December 29, 2023

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