Farmers in the Mekong River Delta have finished harvesting the winter-spring crop and they are harvesting the early summer-autumn crop. The price of young rice is hovering between 4,200 and 4,300 dong per kilogramme, while the price of first-class unprocessed rice is 5,600-5,670 dong per kilogramme and second-class rice is 5,200-5,300 dong per kilgramme. Meanwhile, five percent broken finished product is selling at 6,950-7,000 dong per kilogramme, 15 percent broken rice at 6,450-6,500 dong per kilogramme and 25 percent broken rice at 5,700-5,800 dong per kilogramme.

The Institute for Policies and Strategies on Agriculture and Rural Development Area has forecast that Vietnam’s rice exports this year may reach 5.5 million tonnes, an increase of 0.5 million tonnes over last year.

According to the Vietnam Food Association (Vinafood), Vietnam’s total rice export volume may reach six millions tonnes this year. Huynh Minh Hue, acting Secretary General of Vinafood, said that in the last six months of the year, Vietnam will mainly export summer-autumn and autumn-winter rice.

In the context of the global financial crisis and economic downturn, it is expected that countries in the world will import rice in volumes equal to their consumption demands, while they will not import rice to store up like they did in 2008. Analysts said that the demand will come late, while transactions and deliveries will take place within short periods. Therefore, rice exports and consumption of merchandise rice will depend on the market’s performance. With the current signing of export contracts, farmers will absolutely be able to consume all the merchandise rice of the 2009 summer-autumn crop.

“The domestic rice prices have been inching up, while more export contracts have been signed. If the current situation continues, the export of six million tonnes of rice proves to be within reach,” Hue affirmed.

However, VFA has also expressed concerns that the volume of high-quality rice in the 2009 summer-autumn crop may be lower, since most farmers are growing low-quality seed rice, including IR50404.

However, the Cultivation Department under the Ministry of Agriculture and Rural Development said that IR50404 rice just accounts for 18.2 percent of the total growing area, just 3.2 percent higher than the recommended level.

Prof Dr Bui Chi Buu, Head of the Southern Institute for Agriculture Sciences, also said that it is absolutely possible for Vietnam to export 5.5-6 millon tonnes of rice this year because of the high rice output.

According to the Food and Agriculture Organisation FAO, in 2009, the demand for rice is estimated at 32 million tonnes, up by 2 million tonnes in comparison with 2008.

Source: VietNamNet/TBKTVN