Rice prices continue to increase, businesses and agents only dare to "hold" in moderation

On August 4, Vietnam's rice export price continued to increase by 5 USD/ton. Specifically, 5% broken rice was traded at 598 USD/ton, up 5 USD/ton; 25% broken rice was at 578 USD/ton, up 5 USD/ton.

Jasmine fragrant rice alone rose to 733 USD/ton, up 45 USD/ton compared to August 1 and up 110 USD/ton compared to July 20.

Rice prices in the domestic market also continued to increase by 200 - 300 VND/kg.

Faced with the constantly fluctuating domestic and world rice prices, many businesses and agents said they only dare to stock up on a limited amount of goods because the prices are too high.

According to a representative of Nam Binh Food, cheap rice products are increasing in price the most, because this type is exported a lot, so businesses buy a lot. In the context of export businesses taking advantage of the opportunity, rice products specializing in export are increasing in price even faster. Currently, the price of cheap rice is approaching the price of expensive rice. Meanwhile, high-priced rice such as ST 25, Bac Huong... have increased, but only by 2,000 VND/kg compared to the previous period.

Director of Mai Phuong Company - owner of the Delicious Rice agency at 353 Truong Dinh, Hanoi - said that rice prices are increasing every day, making customers who come to buy worry about asking for prices. Currently, the store still has enough different rice products to serve people's needs. "We prioritize retail because at this time, agents do not dare to hold too much stock. As far as I know, many warehouses in the North are running out of goods, supply cannot meet demand. Rice agents in the North only have enough quantity to sell retail, not enough to sell wholesale in large quantities," he said.

Meanwhile, a representative of the PT Mart supermarket chain also confirmed that rice prices are increasing every day. ST25 rice is being sold at 29,900 VND/kg, a large difference compared to 25,000 VND/kg at rice dealers in the traditional market. According to the supermarket representative's explanation, the price of rice here is normally higher than that of outside dealers. In the current situation of rising rice prices, it is natural for the supermarket to adjust the price.

Many other rice dealers also said that the current supply is low and prices of various types tend to increase.

On August 3, the Ministry of Industry and Trade sent an urgent document to the People's Committees of provinces and centrally-run cities on coordinating the implementation of rice market stabilization work.

The urgent document signed by Deputy Minister Do Thang Hai stated that, in the context of the domestic rice market showing price increases, in order to stabilize the market, ensure supply, and control the increase in domestic food prices, the Ministry of Industry and Trade requested localities to direct the Department of Industry and Trade to urge enterprises participating in the market stabilization program to have plans for rice sources, ensuring supply to the market from now until the end of 2023 and the period of the Lunar New Year 2024 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.

Sharing with the press earlier, a representative of the Ministry of Industry and Trade said that they will closely monitor the market situation to support businesses in balancing supply and demand. The Ministry also requested that rice exporters regularly maintain a minimum circulating reserve of 5% of the amount of rice they exported in the previous 6 months. In case of a supply shortage, measures will be taken to control rice exports.

Meanwhile, the Ho Chi Minh City Department of Industry and Trade also said that rice is one of the food items that are stabilized every year. Since the beginning of the year, stabilized rice prices have not been adjusted, and are sold 5-10% lower than the market price. In case of any abnormalities, businesses that want to adjust must ask the Department of Finance for permission, and the price will only change by 5-10%. In areas where purchasing power increases, suppliers must balance and increase supply to avoid price escalation.

According to VTC News