Since mid-January, rice prices have decreased to 7,300-7,800 VND/kg. However, these prices are still higher compared to previous seasons, and farmers are seeing a profit of approximately 60%, based on production costs reported by the Finance Association at around 4,000 VND/kg.

This information was provided by Mrs. Bùi Thị Thanh Tâm, Chairwoman of the Board of Directors of Northern Food Corporation (Vinafood 1), at the Government’s Spring Meeting with Representative State-Owned Enterprises on March 3.

According to Mrs. Tâm, since mid-January, rice prices have fallen by about 30%, with enterprises and importers delaying purchases to wait for lower prices. Prices peaked between 9,000 VND/kg and have now dropped to 7,300-7,800 VND/kg. Although prices have decreased, they are still higher than those of the Winter-Spring crop of 2023 and previous seasons.

"With current rice prices, farmers still enjoy a profit of around 60% based on the production cost set at 4,000 VND/kg by the Finance Association, despite a significant drop from the previous high prices," affirmed Mrs. Tâm.

The leader of Vinafood 1 also pointed out that the recent drop in rice prices is due to the peak harvest season, where all fields and provinces are harvesting simultaneously, leading to congestion at fields, mills, and even domestic ports.

Additionally, major rice-producing countries like Thailand, the Philippines, and Indonesia are also in their harvest season from March to May. Some rice-consuming countries, including African nations and the Philippines, have substantial rice stocks and will prioritize domestic consumption before importing more.

According to Mrs. Tâm, Vinafood 1 has offered rice to some importers, but they have indicated they will "consider further and may discuss later." The global market is currently undergoing adjustments, with Vietnam accounting for only 15-18% of global rice exports.

A positive development in January was Vietnam's successful bid in Indonesia, with a large volume of 500,000 tons, of which Vietnamese exporters secured nearly 400,000 tons at high prices.

With current prices, the report to the Prime Minister confirms that farmers are indeed making a profit and are encouraged, with expectations that they will continue to increase production.

Looking ahead, the government and relevant ministries have forecast a continued high demand for rice in 2024, and importers are planning accordingly.

Vinafood 1 continues to purchase rice regularly

Mrs. Bùi Thị Thanh Tâm mentioned that following the directives from the Prime Minister and the Chairman of the State Capital Management Committee, the corporation has continuously purchased rice. To date, they have acquired approximately half a million tons of rice and will continue purchasing. Additionally, private company warehouses are also buying rice.

To boost production, ensure domestic food security, and support exports, Vinafood 1 has proposed to the National Reserve Department and the Ministry of Finance to advance the annual rice reserve purchasing program, as enterprises need contracts to implement and ensure quality in storage.

This year has presented many challenges, so the corporation also hopes that the State Bank of Vietnam (SBV) and commercial banks will continue to support by lowering interest rates and easing lending conditions for rice exporters and processors.

Regarding the sustainable development project for 1 million hectares of high-quality rice cultivation, which holds significant importance both domestically and internationally, Vinafood 1 requests the government to assign relevant ministries and provinces to implement the project and review the previous large-field program. They also recommend involving the business community in future conferences and discussions.

Source: Vietstock