Rice market fluctuations

Rice prices increased dramatically

According to a survey by Hai Duong Newspaper reporters, currently, at some rice dealers in the province, rice prices have increased by 2,000-3,000 VND/kg compared to about a month ago. Specifically, ST 25 rice costs 28,000 VND/kg, Tam Thai 21,000 VND/kg, Tam Dien Bien 20,000 VND/kg, Bac Thom 19,000 VND/kg, Huong Lai 18,000 VND/kg, BC15 and Dai Thom are both at 16,000 VND/kg, Khang Dan 14,500 VND/kg...

According to Mr. Nguyen Duc Hung, Director of Vinafood I Joint Stock Company (Hai Duong City), on average, the company supplies more than 300 tons of rice to the market each month. The sharp increase in rice prices has had a certain impact on the company's business activities. Some partners in the Southern region required the company to buy rice at the market price before delivering goods. Some partners have returned the money they had received earlier and refused to deliver goods to the company. This forced Vinafood 1 Joint Stock Company to quickly find new partners to import goods in order to deliver to customers on schedule. The delivery to some customers in the last months of the year was signed in early June. At that time, the price of rice was at 11,000-12,000 VND/kg, but now it is at 13,000-15,000 VND/kg, so the company had to accept losses.

Hung Huyen Rice Company Limited in Long Xuyen Commune (Binh Giang) specializes in importing rice for milling and selling to the market. Ms. Nguyen Thi Huyen, Deputy Director of the company, said: “Normally, the rice market remains stable, if there is an increase, the increase only fluctuates from 300-400 VND/kg. Never before has the price of rice increased so dramatically as it does now. The increase in rice prices has pushed up the price of paddy. Currently, Bac Thom rice costs 10,400 VND/kg, an increase of 1,700 VND/kg; BC15 is 9,800 VND, an increase of 1,600 VND/kg. Since the beginning of August, the company has had to compensate for a loss of about 100 tons of rice with a total amount of 100 million VND. “Domestic rice prices have been increasing continuously while we still have to comply with the prices according to previously signed contracts, so we have had to compensate for the loss. Sometimes having to make up for losses in the business process is something that must be accepted according to market rules," said Ms. Huyen.

Ms. Pham Thi Hai, owner of a rice dealer in Gia Loc town, said that when rice prices increased, the dealer was also forced to adjust the selling price to consumers. All types of rice have increased in price in recent weeks. Some types have changed prices continuously by day, even by hour. It is expected that in the coming time, the rice market in Hai Duong will continue to have many fluctuations due to the influence of the domestic and world markets.

Subject to many factors

The increase in rice prices has directly affected the input costs of establishments producing and processing rice products. Ms. Do Thi Lanh, a Q5 rice paper producer in Chi Lang Nam commune (Thanh Mien), said that the price of Q5 rice has increased from VND8,000 to VND9,000/kg. Every day, her establishment uses about 2 tons of rice to process rice paper. Although the input production costs have increased, she still tries to keep the selling price of the product the same.

On August 15, the Ministry of Industry and Trade issued Directive No. 07/CT-BCT on strengthening market information, trade promotion, developing rice export markets and stabilizing the market in the current period. Accordingly, the Ministry of Industry and Trade directed the Departments of Industry and Trade of provinces and cities to coordinate with the Department of Agriculture and Rural Development to review the situation of rice production in the localities. Strictly handle cases of speculation, illegal profiteering, and pushing rice prices unreasonably high. Enterprises have plans for rice sources to ensure supply to the market from now until the end of the year.

On that basis, the Department of Industry and Trade has coordinated with the Department of Agriculture and Rural Development to review the rice output in the province. Thereby, it shows that the average rice output of Hai Duong is about 667,000 tons/year. In addition to serving the needs of the province, Hai Duong's rice output can also supply the market of some neighboring localities. According to the Department of Industry and Trade's assessment, currently, the rice supply in Hai Duong is still guaranteed due to abundant supply. The reason for the increase in rice prices in the Hai Duong market is due to the impact of domestic rice prices. Some major rice exporting countries such as India and the United Arab Emirates (UAE) have imposed export bans, so Vietnam has promoted the rice export market. This causes rice prices to increase because many sources and businesses collect goods for export.

Pursuant to the direction of the Ministry of Industry and Trade, in the coming time, the Hai Duong Market Management Department will strengthen inspections of rice trading establishments in the area to control supply and selling prices, and at the same time prevent acts of hoarding and unreasonable pricing of rice products.