HANOI (Commodity Online) : World’s second largest Riceexporter Vietnam said it will export more rice to cash in on the demand boom for the commodity.
Vietnam Food Association said country’s rice exports rose 26 percent year-on-year in the first seven months as importers looked for new suppliers in anticipation that Thailand will raise its prices.
Vietnamese government has ordered the Vietnam Food Association to ensure that increased rice exports will not hurt the domestic market.
Vietnam shipped 4.61 million tons of rice during the period, up 16.7 percent in terms of volume from a year ago. Export revenues reached $2.18 billion, a 26 percent increase over the same period last year.
In July, local exporters continued to sign new contracts for a total volume of one million tons, which the association said, is a new record.
Thailand, the world’s largest Rice exporter, is expected to offer higher prices to its farmers, prompting many buyers to scout for other supply sources.
The US has cut back on rice production by 30 percent this year while the demand for the grain in Asian markets like Indonesia, Malaysia and the Philippines is still high, the Vietnam Food Association said.
The average price of Vietnamese rice was $473.3 per ton in the January-July period, up 8 percent from a year before.