Rising rice prices are a major challenge for global rice trade.
Speaking at the seminar “World rice market situation” organized by the Vietnam Food Association (VFA) in collaboration with SS RiceNews on September 6, Mr. Nguyen Ngoc Nam, Chairman of VFA, said that the ban India’s sudden export of rice on July 20, 2023, followed by an order to stop rice exports from a number of countries, made demand for this essential food product scarce, pushing rice prices up sharply compared to the previous period. ago, had a major impact on world rice trade.
In order to implement the direction of the government and the Prime Minister, VFA has coordinated with the People’s Committees of rice producing localities to synchronously deploy tasks and solutions to VFA members and export traders. rice throughout the country with the motto of taking advantage of market opportunities to promote exports, contributing to promoting the country’s growth, ensuring circulation, participating in stabilizing the market, and ensuring national food security in the country. Every situation.
Mr. Nam said that in the coming time, the world rice production and trade market is expected to have many fluctuations due to the rice import and export policies of some countries and extreme weather developments affecting production. rice, therefore, the issue of national food security needs to be brought to the forefront more than ever.
At the discussion, Mr. V Subramanian, representative of SS RiceNews, said that the current increase in rice prices is a big challenge for global rice trade, the cause of the increase in rice prices is due to speculation and too many speculations. From there, it can cause rice suppliers in the supply chain to create a wave of defaults, losses and complications, such as short selling due to being under pressure.
In this situation only businesses with inventory will be successful. A lot of renegotiation, along with delivery delays, means that transportation and logistics costs across the value chain are rising, leading to many unforeseen risks.
“The decisions of countries buying rice before the fourth quarter of 2023, and India’s policies, continue to affect the upcoming rice export market,” Mr. V Subramanian emphasized.
The seminar “Situation of the world rice market” took place on September 6
Two main factors affecting the rice market
Mr. Do Ha Nam, Vice Chairman of VFA, Chairman of the Board of Directors and General Director of Intimex Group said that having a good source of information about the global rice trade market will help businesses a lot. Because the political role of rice is very large and no one can predict everything that can happen in major rice exporting countries.
VFA also issued a warning that in the Summer-Autumn 2023 crop, rice prices will not go down but will increase, but businesses believe that rice prices will go down, so they signed contracts to sell rice at relative prices, when India decided to ban the export of rice to the market. rice prices bounced up quite high. If you pay close attention, you will see that from 2022, India has banned rice exports… And the Russia-Ukraine conflict is a very high opportunity for them to continue doing so. In fact, they do it very quickly and aggressively.
To avoid risks, Mr. Nam said, businesses really need market forecasting companies to provide timely and honest information and the data must closely follow the market so that VFA can exchange with members in the market. association as well as providing rice production businesses.
On the other hand, VFA is very interested in the comments of leading rice trading experts in the world about each country’s market assessment, opportunities and risks so that businesses can see potential problems. occur to make calculations, minimize the risks for the business.
By: Nguyen Huyen newspaper Life – Business