Retail rice prices increase daily, traders are restless

On the morning of August 7, Mr. Tran Tri Hieu, owner of Ngoc Phuc rice agency, expressed his impatience with the situation of retail rice prices that are escalating every day and showing no signs of slowing down.

Mr. Hieu said that since July 20, before India banned rice exports, rice prices in the domestic market have continuously increased.

“I import rice now and every day I am subject to a floor price, each day a different price. For example, a type of rice A, today the floor price is 18,000 VND/kg, this price is only maintained until 5pm on the same day. The next day, the floor price may be 21,000 - 22,000 VND/kg. In addition, importing goods has become more difficult because currently in general warehouses, large warehouses like in Cai Lay (Tien Giang), there seems to be a situation of hoarding, waiting for higher prices to sell at a good price,” said Mr. Hieu.

According to Mr. Hieu, there are even times when rice prices change hourly. This makes it very difficult for small traders to do business, because they cannot sell to consumers at prices that fluctuate hourly like that. "We have to increase the price of rice sold to consumers, but there must be a delay. If it suddenly increases, customers will react," said Mr. Hieu.

Accordingly, currently, all types of rice at this rice dealer have increased in price from 2,000 - 5,000 VND per kg, with one type increasing by 7,000 VND per kg, such as Japanese rice, which increased from 17,000 VND to 24,000 VND per kg. Other types of rice such as Bac Huong rice increased in price from 16,000 VND to 18,000 VND per kg; Thai small grain jasmine rice increased from 18,000 VND to 21,000 VND per kg...

A survey at many other rice dealers in Hanoi also showed that retail rice prices have increased several times in the past week. Mr. Tri Dung, owner of a rice dealer in Phuong Mai (Dong Da, Hanoi) said that one of the cheapest rice types at this dealer, Khang Dan rice, has also experienced two price increases, from 16,000 VND/kg to 17,000 VND/kg and now 18,000 VND/kg.

However, some other agents have not yet increased retail rice prices. The owner of Thu Hau rice agent on Mai Dong street (Hoang Mai, Hanoi) said that the current price of imported rice has increased by 10-15%, all types have increased in price. However, this agent still sells to consumers at the old price because the amount of rice imported before the price increase is still available. "However, the amount of rice sold at the old price will probably only last for 2 more days," said this owner.

The high retail price of rice also makes consumers worried. Ms. Tran Thi Thu (Hoang Mai, Hanoi) said: "In just a few days, the price of one kilo of rice has increased by 30,000 - 40,000 VND. I don't know when it will stop increasing. This morning, I went to buy rice, I should have only bought 10kg at a time like usual, but knowing the situation shared by the dealer, I had to buy 2 bags (10kg each bag) to be safe."

Mr. Tran Minh (Dong Da, Hanoi) is worried that the continuous increase in rice prices will create opportunities for many small traders to "hoard goods" and raise prices for profit.

Even exporters are concerned if rice prices continue to rise. Mr. Pham Sau, owner of a rice exporting company in Long An, said that prices of all types of rice are increasing sharply, with the sharpest increase in the low-priced rice segment, as these are key export products.

However, rice exporting enterprises are facing many difficulties, if they do not react in time, they will suffer heavy losses. Currently, rice prices are constantly increasing by 500 - 1,000 VND/kg every day. To have enough rice for export, enterprises must increase collection and this costs more than before.

In addition, in the coming time, rice prices will continue to “escalate”, while signed contracts with partners cannot adjust prices according to market fluctuations. In that case, exporting enterprises will suffer losses.

Regarding the current situation of daily fluctuations in rice prices, according to Ms. Pham Bich Thuy, Tam An Nong Company Limited (Can Tho), the reason is partly due to rice being sold “through hands and names” through many channels. Therefore, the current solution is to have a floor price for rice products. In addition, exporting enterprises also need to extend the export time to prepare for timely collection and production.

Recently, the Ministry of Industry and Trade has sent an urgent document to the People's Committees of provinces and centrally-run cities on coordinating the implementation of rice market stabilization work.

In an urgent document dated August 3 signed by Deputy Minister Do Thang Hai, the Ministry of Industry and Trade said that in the context of the domestic rice market increasing in price, in order to stabilize the market, ensure supply, and control the increase in domestic food prices, the Ministry of Industry and Trade requested the People's Committees of provinces and cities to coordinate in market stabilization work.

Specifically, the Ministry of Industry and Trade requested localities to direct the Department of Industry and Trade to urge businesses participating in the market stabilization program to have a plan for rice sources, ensuring supply to the market from now until the end of 2023 and the 2024 Lunar New Year period at stable prices.

Direct local rice exporting enterprises to maintain the amount of paddy and rice in reserve to stabilize the market according to regulations to be ready to supply the market when necessary; carry out purchasing and delivery according to reasonable progress and balance export volume to ensure supply for the domestic market.

The Ministry of Industry and Trade reminds businesses to avoid buying in bulk, causing market instability and local supply-demand imbalance, pushing up domestic rice prices unreasonably.

According to VTC News