Rice export value jumps as volume goes down

Hanoi (VNA) - Vietnam earned around 2.4 billion USD from rice exports in the first nine months of this year, up nearly 90 percent against last year thanks to the price hike in the global market, reported the Trade Information Centre.

As the prices skyrocketed, the country exported a mere 3.7 million tonnes
during that period, down 7.4 percent in volume, according to the centre
under the Ministry of Industry and Trade (MoIT).

The centre's analysts attributed Vietnam 's higher revenue to the fact
that rice prices in Asia unexpectedly tripled in April and May from the
corresponding time last year.

In addition, rice exporters have already signed contracts to ship more
than 400,000 tonnes in the fourth quarter.

On a track of good performance so far this year, the Vietnam Food
Association forecasts that the country can export another 1 million tonnes
of rice by the end of the year, bringing the yearly figure to 4.6-4.7
million tonnes.

The centre expects that rice prices will continue inching upwards for the
remaining months of the year due to rising demand from the Philippines and
Africa .

Filipino importers will possibly negotiate with local companies to ink
deals in October for delivery in January, 2009. To prepare for these
contracts, Vietnamese firms will have to purchase summer-autumn paddies from
farmers, pushing paddy prices in the Mekong Delta edge up to 3.900 VND per
kilo from 3.700 VND the previous week.

Anther factor may drive Vietnamese rice export prices up in the future
stems from the fact that prices of 5 percent broken rice from Vietnam were
cheaper at 540-550 USD per tonne against similar rice from Thailand at 700
USD per tonne.-Enditem