Price of rice

Vietnam, October 2023

The recent dynamics in the global market, particularly India's export ban, have significantly impacted Vietnamese rice prices. Here’s a compilation of the latest updates regarding Vietnamese rice prices:
Price Increase:

  • The average rice export price from Vietnam during the first half of 2023 reached $539 per tonne, marking a 10.2% increase over the same period in the previous year. This increase is attributed to India's move to restrict rice exports which prompted a positive expectation among traders for a further price rise​1​.
  • Moreover, the price of Vietnam's 5% broken rice jumped to $550-575 per tonne on July 27, 2023, a significant increase from the $515-525 per tonne range in the preceding week, making it the highest price point since 2011​2​.
  • Additionally, the export prices of Vietnamese rice in the initial two months of 2023 rose by 9.8% year-on-year to $528.5 USD/tonne, as reported by the Ministry of Agriculture and Rural Development (MARD)​3​.

Renegotiation of Prices:

  • Following India's ban on rice exports, Vietnamese exporters renegotiated prices for around 500,000 metric tons of rice. Consequently, prices soared to 15-year highs on the global stage. Specifically, importers from countries like Indonesia and the Philippines agreed to pay between $30 and $80 more per ton for Vietnamese fragrant rice, raising the price to around $550 per ton. The high demand and renegotiated prices also saw fragrant rice from Vietnam being offered at as high as $700 a ton, although later prices were renegotiated to around $580-$630 a ton​4​.

Comparison with Thai Rice Prices:

  • In comparison, Thailand's 5% broken rice prices were offered at $650-$655 per ton, while a similar variety from Vietnam was offered at $620-$630 per ton. Before India's export ban in July, Thai rice prices were quoted at $545 per ton and Vietnam at $515-$525 per ton​4​.

Impact on Consumers and Global Market:

  • The escalating rice prices pose a threat of food price inflation, especially affecting consumers in Asia and Africa. This price hike is exacerbated by a 20% increase in the offered prices by Asian rice exporters post India's export ban. The ban by India, which contributed to 40% of the world's rice supplies, removed 10 million tons of supplies from the international market, thus significantly impacting global rice prices​4​.

These updates underline a substantial upward trend in Vietnamese rice prices, majorly driven by India's export restrictions and the subsequent market reactions.