Vietnam’s rice price continues to rise as the harvest season ends, creating a shortage of supply.
Vietnam’s 5% broken rice is now at $623 per ton, 7% higher than that of Thailand and 10.7% higher than that of Pakistan.
The domestic paddy price has also been rising to unprecedented levels. Japanese paddy J02 is now priced at up to VND14,000 ($0.57) and Khang Dan VND9,000, which have never been recorded before.
Traders have been buying in large orders amid a decline in supply as the season ends, and this is why paddy prices are high, farmers said.
Huynh Thi Bich Huyen, CEO of rice trading company Ngoc Quang Phat, said that she can only buy several hundred tons of paddy each day, which is one-third of last month.
This shows a shortage in supply and that is why prices are hiked, she added.
Rice exports surged 40.4% year-on-year to $3.66 billion in the first nine months of this year. It is forecast to reach a new peak of $4 billion by the end of the year.
The average export price was $553 per ton in the first nine months, up 14% year-on-year.
Farmers have seen their profits double from last year.
The Vietnam Food Association forecast that rice prices will stay at a high level in the remaining months as supply will still be low globally.
Countries such as Indonesia, China, the Philippines, Turkey and Chile have all upped their imports.