Vietnam exports over 5 million tonnes of rice in seven months

The figures represent increases of 25.1% in volume and 5.8% in value over the same period last year, said the MARD.

Farmers harvested 25 million tonnes of rice on 3.82 million hectares of farming land, with the average yield standing at 6.56 tonnes per hectare.

Data compiled by the Vietnam Food Association on August 3 indicates that the export price of 5% broken rice was US$559 per tonne, while that of the 25% broken rice was US$535 per tonne.

Rice trading is forecast to continue to increase in the world market that will therefore impact the Vietnamese rice market. However, rice exporting enterprises are still waiting for India's new policy following its rice export ban last year.

India currently holds about 40% of the global rice export market. If it moves to lift or relax the ban, then it will pull rice prices in major exporting countries in the world down to quite low levels.

Moreover, local enterprises are also facing difficulties in purchasing rice within the domestic market as rice prices decrease, warehouses limit milling and rain delays the summer-autumn rice harvest.

Industry experts have recommended that businesses should focus on purchasing summer-autumn rice to have a full inventory before signing contracts to avoid risks.

The country's rice production is expected to reach 43 million tonnes for the entire year. This output will thereby ensure domestic consumption and export demand of more than eight million tonnes, earning over US$5 billion as the set target.