Rice may be short for 2007 exports 17:15' 16/10/2006 (GMT+7)
VietNamNet Bridge – That the total paddy yield in the Cuu Long River Delta may decrease by 660,000 tonnes this year due to bad weather and diseases has sparked concern that rice may be wanting for exports in 2007.
According to the Ministry of Agriculture and Rural Development (MARD), the sharp decrease of paddy yield in the Cuu Long River Delta has badly affected rice exports. However, the situation is better in other provinces of the country with the total yield of 36.2mil tonne nationwide, up by 400,000 tonnes over 2005.
The Vietnam-sourced rice price has increased by $6.8/tonne over 2005 in the international market, but the export volume has fallen by 8.4%, leading to the lower rice export turnover increase of 7.4%, reaching $1.1bil only.
According to Vietnam Food Association’s (Vinafood) Chairman Truong Thanh Phong, rice exports to several key markets have seen considerable decreases, including Africa (down by 24%), the Middle East (39%) and America (30%). Meanwhile, exports to Asian countries have increased by 7.6% only.
To date, Vietnamese rice exporters have signed contracts to export 800,000 tonnes with delivery at the end of the year. Minister of Agriculture and Rural Development Cao Duc Phat said that the target of 5mil tonnes of rice in this year can be reached. The inventory level was reportedly at 600,000 tonnes at the end of September.
MARD has asked rice exporters to consider many factors carefully before signing contracts including the weather and diseases. Mr Phat said that the inventory level would not be much at the beginning of the year, and it would be better for enterprises to deliver products at the end of the first quarter of 2007 when Vietnam begins harvesting the winter-spring crop.
According to Vinafood, in the first quarter of 2007, Vietnam will need some 1.3mil tonnes of rice to fulfil the orders from Indonesia (200-300,000 tonnes), the Philippines (700,000 tonnes), Iraq (400,000 tonnes) and Iran. Rice prices may see a slight increase in the beginning of the year.
