Rice Export Prices Drop to Lowest Level in 9 Years

The export price of 5% broken rice from Vietnam has fallen 5.9% since the end of 2024, reaching $399 per ton last Friday, the lowest value in nine years. According to the Vietnam Food Association, this price is $32 and $14 per ton lower than similar products sold by Thailand and India, the other two major rice exporters in the world.

Exporting companies stated that this represented a 40% drop from the peak of $663 seen in November 2023.

Meanwhile, the average price of rice with 25% broken kernels dropped to $371 per ton. Competing exports from Thailand, India, and Pakistan were priced at $410, $394, and $377, respectively.

Dinh Ngoc Tam, vice-CEO of the rice exporter Co May, explained that prices fell due to increased global supply, with India returning to the market with record rice reserves. “My company had few orders last month and none in February,” he said.

Business owners expect prices to continue to drop as Vietnam’s winter-spring rice harvest, the main harvest of the year, begins soon. Due to favorable weather conditions, an abundant crop is expected.

According to the Ministry of Agriculture and Rural Development, Vietnam exported 500,000 tons of rice, worth $308 million, last month. This represents a 1% increase in volume but a 10.4% decrease in value compared to last year.

The Food Association forecasts rice exports of 7.5 million tons this year, down from the record 9 million tons in 2024. The U.S. Department of Agriculture expects global rice supply in 2024-25 to reach a peak of 527.6 million tons, mainly due to increased production in India and China. The forecasted consumption is 526.4 million tons, with 56.3 million tons expected to be exported.

Source: Planeta Arroz

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