Vietnam rice prices continue to drop as the Philippines, the largest market for the Vietnam rice has extended its rice import ban for another 30 days. The further extension of rice import ban by the Philippines is possibly to continue until the end of the year. In this context, The United Nations’ Food and Agriculture Organization (FAO) observed that bearishness gripped global Indica rice markets in September as supplies remained ample amid tight demand. “Prices fell the most in Vietnam, as sentiment was also weighed by the Philippines’ import suspension (originally slated to last 60 days, but successively extended by at least 30 days),” FAO said in its monthly rice market brief.
Vietnam Rice Prices Fall to Near 3-Year Low
Owing to rice import ban in Philippines, Vietnam rice prices have plunged to their lowest level in nearly three years. Since the Philippines is the world’s largest rice importer and the biggest buyer of Vietnamese rice, the rice impost suspension for 60 days and now its further extension is a major blow for rice exporters of Vietnam. Reportedly, the benchmark 5% broken rice in Vietnam averaged nearly 372.1 per metric ton in September, about four percent lower than its average quotation in August of $389 per MT, the results are based on FAO data. On an annual basis, owing to the Philippines rice import ban Vietnam rice price fell by 32 percent from last year’s $546.5 per MT. For the unversed, the Philippines imposed the ban on rice imports from the Vietnam for 60 days from September 1. In this context, the Vietnam Food Association has requested the country’s trade ministry to challenge the move by the Philippines to stop rice imports for 60 days. Traders stated that the move will significantly harm the local production. The Philippines government said that the government has imposed rice import to safeguard its local farmers.