Since the beginning of 2022, Vietnam rice price has considerably increased due to several factors. From the mid-year, it is estimated that Vietnam rice price will decrease. What are the reasons for the downward trend?
- 1 Vietnam rice price: The fluctuations in the first half of 2022
- 2 Vietnam rice price: Factors causing the fluctuation
- 3 Forecast for the second half-year 2022: 3 reasons for the decrease in Vietnam rice price
- 4 Vietnam rice price: Price list
- 5 Vietnam rice price: Credible sources to check the price for international buyers
Vietnam rice price: The fluctuations in the first half of 2022
Vietnam rice price has undergone many fluctuations since the beginning of 2022. How has it changed?
Vietnam rice price from January to April 2022
In January 2022, price of wholesale rice in Vietnam was 398-402 USD/ton for 5% broken rice, 378-382 USD/ton for 25% broken rice and 328-332 USD/ton for 100% broken rice. Until April, the Vietnam rice price of 100% broken rice was adjusted three times, with the total increase in all three phases up to 17 USD/ton. The Vietnam rice price of 100% broken rice was being sold at 355 USD/ton. The price of 25% broken and 5% broken rice remained stable at $395 and $415/ton, respectively. The increase in the value of rice exported is not due to the shortage of food but due to the instability of the world affected by the Russia-Ukraine crisis in recent days, causing all countries to have a high demand for hoarding the food. In addition, the expensive input costs and freight cost in the early year 2022 were also contributers for the high Vietnam rice price.
The Philippines is Vietnam’s largest rice consumption market in the first four months of 2022, accounting for 41.9% market share. During this period, rice exports to the Philippines reached 915,500 tons and 422.2 million USD, up 28.3% in volume and 11% in value compared to the same period last year. The market with the highest increase in rice export value is the US (62.6%). In contrast, the market with the largest decrease in rice export value was Ghana (39.2%).
Vietnam rice price in May and June 2022
Vietnam rice price in May and June 2022 continues to increase by $3 a ton compared to the previous month, at $423 a ton for 5% broken rice, $403 a ton for 25% broken rice and $378 for 100% broken rice. Vietnam rice price fluctuates based on the trend of world rice prices. Since the average world price of food is still on an upward trend, Vietnam rice price for export continues to go up. The increase in the price is because of the high demand for rice products from the Philippines and China since rice yields and rice stocks in these countries are at a low level because of floods and harsh weather.
Vietnam rice price: Factors causing the fluctuation
Freight rates is one of factors that strongly affect the Vietnam rice price. Freight rates in Viet Nam have increased rapidly since the beginning of 2022. One of the reasons why freight rates have skyrocketed is the prolonged supply chain disruption leading to a shortage of empty containers in Asia. However, according to the updated information in June 2022, freight rates in Viet Nam are on a downward trend as follows:
Good or bad weather during the crop can considerably affect the rice yield and rice supply. Good weather results in an abundant rice supply, but extreme weather reduces the rice yield and raises rice prices. At the beginning of the winter-spring crop 2021-2022, the rice crop in Vietnam grew well and had a high yield because of the nice weather. As a result, Vietnam has high rice supply in Vietnam this year, making the Vietnam rice price for export remain low and steady.
Russia – Ukraine crisis
The conflict between Russia and Ukraine has caused many countries to have a high demand to hoard food. The ongoing crisis causes many countries to import more rice from Asia, including Vietnam. The input costs of rice also increase because the fertilizer and fuel costs are elevating under the impact of the crisis. Due to the high demand for rice products and high input costs, the Vietnam rice price and other major rice exporters like India and Thailand has increased.
The EU grants Viet Nam a quota of 80,000 tons of rice annually under the EVFTA, including 30,000 tons of milled rice, 20,000 tones of unmilled rice, and 30,000 tons of fragrant rice. After 3-5 years, the EU will reduce the duty rate on rice products to 0%. This has created an opportunity for Vietnamese rice to compete in price with rice from other countries to enter the EU market.
To control inflation, the Philippines has just agreed to reduce import taxes on Vietnamese rice. The Philippines levies an import tariff of 35% on Vietnam rice price until the end of 2022. (the previous tax rate was 40-50%). This allows rice merchants in the Philippines to gain access to the rice supply in Vietnam at a more stable price.
Forecast for the second half-year 2022: 3 reasons for the decrease in Vietnam rice price
It is forecasted that Vietnam rice price will decrease in the second quarter of 2022.
- 1/ The price of rice is decreasing due to the significant increase in rice supply worldwide. The demand for rice will increase again in the middle of the year with stronger demand from markets such as China, Bangladesh, Iran and Sri Lanka.
- 2/ In the first quarter of 2022, it is also reported that the weather in Vietnam is nice and ideal for the Winter-Spring crop 2021-2022. Consequently, rice yield is not severely affected by harsh weather and the rice supply is abundant to be exported in the second quarter.
- 3/ The world trade is now open and the supply chain is no longer disrupted by COVID-19 or the shortage of containers. Therefore, freight rates from Vietnam ports to different countries have reduced and remained at a stable level. So, the Vietnam rice price for export will be set at an affordable and competitive level.
Vietnam rice price: Price list
Both Vietnam and Thailand focus on exporting speciality rice, high-quality rice and fragrant rice varieties, while rice products from India and Pakistan are in a lower-quality segment. Therefore, the Vietnam rice price and Thailand rice price are higher than those of India and Pakistan. Below are the detailed FOB rice prices from these four countries. The information is updated in June 2022 and for reference purposes only:
5% broken rice: 441 USD/MT
25% broken rice: 437 USD/MT
5% broken rice: 423 USD/MT
25% broken rice: 403 USD/MT
100% broken rice: 378 USD/MT
5% broken rice: 408 – 412 USD/MT
25% broken rice: 392 – 396 USD/MT
5% broken rice: 338 – 342 USD/MT
25% broken rice: 323 – 327 USD/MT
Below is the Vietnam rice price of some rice varieties. These rice varieties are all produced and supplied by K-Agriculture. K-Agriculture is confident to give the most competitive prices of rice compared to other rice suppliers in Vietnam. The price list is updated in June 2022 and for reference purposes:
ST24 5%: 900 – 1000 USD/MT
ST25 5%: 890 – 1025 USD/MT
KDM 5%: 640 – 725 USD/MT
Japonica 5%: 635 – 725 USD/MT
Jasmine 5%: 580 – 660 USD/MT
DT08 5%: 530 – 600 USD/MT
OM5451 5%: 470 – 530 USD/MT
IR 504 5%: 465 – 530 USD/MT
Vietnam rice price: Credible sources to check the price for international buyers
Ycharts is an investment research tool that assists investors and advisors in making better investment decisions. On Ycharts website, readers can find the latest indicators and information about world market trends and prices of different commodities from different countries. There is also Vietnam rice price of 5% broken rice updated monthly on Ycharts. All of the data on this website is sourced from World Bank, so you can trust its credibility.
FAO stands for Food and Agriculture Organization, which is a United Nations agency in charge of leading international efforts to stop hunger around the world. The FAO also updates rice prices from major rice suppliers in the world on a monthly basis. You can check and compare the latest Vietnam rice price with other countries.
Daily Price of Vietnamese agriculture products
Daily Price of Vietnamese agriculture products is a page on Facebook. The page has a mission to update the latest and newest export Vietnam rice price from Vietnamese suppliers. It is a non-political and non-commercial page to share the price of Vietnamese agri-products in the context of continuous price fluctuations in the global market.
K-Agriculture is proud to be a top leading rice factory in Vietnam. We are trusted by the Ministry of Industry and Trade of Vietnam and by many international customers.
Contact K-Agriculture to get the latest and cheapest Vietnam rice price:
Whatsapp: +8484 444 4867 (Ms Camila), +8485 555 5837 (Ms Kris)