Floor export rice prices may be removed

HCMC – Local firms would be allowed to export rice to their clients at the prices on which the two sides agree, instead of the floor prices set by the Vietnam Food Association (VFA).

The Government has told the ministries of industry-trade and agriculture-rural development to consider the impact of pilot removal of the floor prices on rice exports and propose appropriate management measures to facilitate export activity.

In the first four months of this year, Vietnam got US$931 million from exporting 2.04 million tons of rice, down 7% in volume and 5% in revenue compared to the same period last year.

However, rice exports to the Philippines in the first quarter of this year surged six times in volume and 6.68 times in sales year-on-year, making it the second biggest importer of Vietnamese rice. That market imported nearly 27% of Vietnam’s rice exports in the period after China with 38%.

VFA forecast rice exporting countries would face fierce competition while importing countries would increase domestic supply. Therefore, local exporters would have difficulty shipping the food staple.

Apart from pilot removal of the floor rice prices, the two ministries have been told to diversify export markets and set attainable targets.

VFA has recently revised down this year’s rice export target to 6.2 million tons from 6.5-7 million tons it announced earlier this year.

The FOB floor prices set by the VFA are US$410 per ton for 5% broken rice, US$375 per ton for 25% broken rice, US$365 per ton for 35% broken rice.

Pepper exports seen hitting US$1 billion this year

Vietnam’s pepper exports are forecast to reach around 150,000 tons this year with a total value of some US$1 billion, up US$100 million from last year, according to the Vietnam Pepper Association (VPA).

VPA chairman Do Ha Nam, who recently won reelection for the 2014-2017 term, said Vietnam has exported 90,000 tons worth nearly US$600 million this year. Therefore, 2014 would be the first year pepper is in the group of farm produce generating an annual export value of over US$1 billion, he added.

According to Nam, Vietnam’s pepper has made its way to over 90 countries and territories, contributing 30% of global pepper export volume and attaining 50% global market share. Vietnam can now regulate prices.

Pepper in the country’s southeast and Central Highlands was priced at VND143,000-146,000 per kilogram last Thursday, VND1,000 higher than the previous day. The pepper price on Kochi exchange, India was around US$12.23 per kilogram last Wednesday.

Ngoc Hung

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