Prospects for rice exports in 2010 - Gentraco Corporation

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Tue, 07/02/2012 - 9:25 pm.

Prospects for rice exports in 2010

The rice market in 2010 will be much more hectic than in 2009 as the export price will be higher, making the conditions for exporters just right. The Editor-in-chief of the Rice Today Magazine under the International Rice Research Institute, V. Subramanian (Subra), says that India will import around 1.5-2 million tonnes of rice in February and March. The Philippines will also invite bids for 600,000 tonnes of rice in December, giving Vietnamese businesses an excellent opportunity to boost exports. According to the Vietnam Food Association (VFA), by November 25 Vietnam had signed contracts to export more than 6.72 million tonnes or rice, up 47.8 percent compared to the same period last year.

The country has already shipped 5.601 million tonnes and will move another 1.12 million tonnes in December. Although Vietnam’s rice exports account for only 15 percent of the total global export market, its value is still low and farmers are facing a number of difficulties. Market experts says that 2010 will be very demanding but there are some prospects for the rice sector so businesses should work with each other to improve the value of Vietnamese rice.

Despite hitting a record export volume since 1989, the quality of Vietnamese rice is still low. According to statistics from the Ministry of Agriculture and Rural Development, only 25 percent of farmers have access market information and 90 percent of agricultural products are sold without being prepared in any way. This lowers the competitive edge and the price of Vietnamese rice.

VFA chairman Truong Thanh Phong says that the global demand for rice is increasing but many importers have banned the use of pesticides and have food hygiene and safety standards which prevent Vietnamese rice entering their markets. Therefore, farmers should pay more attention to safer production methods and apply advanced technologies.