Despite India easing its export ban, Vietnamese rice prices remain stable thanks to the shift to fragrant rice varieties such as ST25, affirming its position in the international market.

In the context of India easing its rice export ban, many rice exporting countries in Asia have faced downward pressure on prices, but Vietnamese rice still maintains high export prices.

According to the Vietnam Food Association (VFA), the price of 5% broken rice from Thailand fell by more than 30 USD/ton on October 9 and the country's 25% rice also lost 23 USD/ton compared to the beginning of the month. Pakistan also saw a sharp drop in rice prices, with 100% rice falling below 400 USD/ton.

However, this has not significantly affected the business strategies of rice exporting enterprises in Vietnam. Mr. Pham Van Thinh, Deputy Director of Thuan Minh Import-Export Joint Stock Company, said that domestic consumption demand is shifting strongly from popular fluffy rice to high-quality fragrant rice, especially ST25 rice - the rice honored as the best in the world in 2021 and 2023. "People today are not only concerned with being full but also aim for 'delicious food and beautiful clothes', which contributes to maintaining the appeal of fragrant rice," Mr. Thinh shared.

In addition, Mr. Thinh also emphasized that India's relaxation of the export ban does not significantly affect the Vietnamese rice market. The reason is that Indian rice is mainly used in the production of processed products such as vermicelli, rice noodles, rice paper, and the Vietnamese market has a stable alternative supply, especially 504 rice.

Despite India easing its export ban, Vietnamese rice prices remain stable thanks to the shift to fragrant rice varieties such as ST25, affirming its position in the international market.

Mr. Nguyen Van Nhat, General Director of Can Tho Rice Export Joint Stock Company, said that Vietnamese rice has a great advantage in quality compared to many other exporting countries. “The quality of fragrant rice and sticky rice of Vietnam is superior to that of white rice of India, which is usually only used for processed products. This helps Vietnam continue to maintain its position in the international market, despite competition from countries such as Thailand or Pakistan,” Mr. Nhat emphasized.

Currently, high-quality rice varieties of Vietnam such as: ST25, DT8, OM18, 5451 are having export prices ranging from 530 to 650 USD/ton, lower than rice of the same quality from other countries, usually at over 700 to 900 USD/ton. This is a great advantage when Vietnamese export enterprises can provide high-quality products at reasonable prices, meeting the needs of large import markets such as the Philippines, Malaysia, and Indonesia.

Maintaining and improving the quality of exported rice depends not only on enterprises but also requires close cooperation with farmers. "We cooperate with cooperatives, provide capital, fertilizers and high-quality pesticides to farmers, helping them feel secure in cultivating and producing the best quality rice grains," added Mr. Pham Van Thinh. According to the assessment, this approach not only brings sustainable efficiency to enterprises but also helps improve the lives of farmers.

In addition, investing in modern technology and machinery is also an important factor to improve production capacity and product quality. Enterprises need to carefully consider their scale and development potential, avoid overexpansion and loss of control, and focus on optimizing production and business efficiency.

Despite many advantages in quality, the Vietnamese rice industry still faces major challenges from fluctuations in the global market. The complex political situation and climate change are strongly affecting food security worldwide. This has led to high rice prices in recent times, partly due to concerns about crop failures and supply shortages. However, this price increase benefits Vietnamese farmers, helping them have a more stable income after many years of just having enough to eat and wear.

Looking to the future, Mr. Nguyen Van Nhat said that rice exporting enterprises need to have a sustainable development strategy, should not set too ambitious goals in terms of quantity but should focus on quality and efficiency. "The global market may increase in the coming time, but the important thing is that enterprises must maintain stability and efficiency in business operations, while maintaining the competitive position of Vietnamese rice," Mr. Nhat commented.

Although the world rice market has many fluctuations, Vietnam still holds many advantages thanks to product quality and effective coordination between enterprises and farmers. This promises to continue to promote the strong development of Vietnam's rice export industry in the coming time.

Source: Cong Thuong Newspaper