HANOI, Aug 4 — Vietnam Trade Minister Nguyen Hong Dien today called on the country’s rice exporters to honour their export deals to maintain demand despite a recent surge in prices for the staple grain, state media reported.
Prices of Vietnam’s 5 per cent broken rice rose to a 15-year high of US$590 (RM2,685.38) to US$600 per tonne today, up from $550-$575 a week ago, traders said, after India on July 20 ordered a halt to its largest export category to calm domestic prices.
Two trade sources said earlier this week that some Thai and Vietnamese rice exporters are renegotiating prices on sales contracts for around half a million metric tonnes for August shipments as India’s ban tightens global supplies.
“We need to stick to the signed contracts to protect our reputation,” the minister said at a conference, reported by Tien Phong newspaper.
Dien called on exporters to focus on ensuring rice quality and avoiding excess exports to maintain sufficient domestic supply and fully meet reserve requirements.
“It is unacceptable for a rice exporting country to face tight supplies and high domestic prices,” Dien told the conference.
Vietnam’s paddy output is expected to rise to 43 million tonnes this year from 42.7 million tonnes last year, the head of the country’s Crop Production Department said Tuesday.
Rice shipments from Vietnam, the world’s third-largest exporter after India and Thailand, are expected to reach 7.8 million metric tonnes this year, up from 7.1 million tonnes recorded last year.
Exports in the first seven months of this year were estimated to have risen about 18.7 per cent from a year earlier to 4.84 million metric tonnes, according to preliminary government data.
— Reuters
