Rice prices have decreased despite the temporary storage purchase

► Despite purchasing program for temporary storage of 1 million tons of rice, rice prices in the Mekong Delta last week was down ...

Up to 13/6, most of the households in the Mekong Delta has entered for the summer-autumn rice harvest

Rice exports from the country so far this year has reached nearly 3 million tons. Despite purchasing program for temporary storage of 1 million tons of rice, rice prices in the Mekong Delta last week has decreased.

According to the Vietnam Food Association (VFA), from 1-13/6, national rice exports reached 180 853 tonnes, valued at 73.521 million U.S. dollars FOB, CIF value of U.S. $ 81.729 million. Since the beginning of the year, rice export reached 2.969 million tons, valued at 1,285 billion dollars FOB, CIF worth USD 1.35 billion.

Thus, the export of rice perfectly capable of rolling threshold of 3 million tons this June. Rice export target for 2013 that the proposed VFA was 7.5 tons.

Rice export markets during the global slump due to abundant supplies that the absence of buyers. To support the price of rice in this context, the Government has decided to temporarily store 1 million tons of rice in 2013 summer-autumn crop in the Mekong Delta. Phase buying rice for temporary storage has commenced on 15/6 and is expected to last until 31/07/2013. VFA has over 115 criteria for eligible businesses who buy rice for temporary storage.

Up to 13/6, most of the households in the Mekong Delta has entered for the summer-autumn rice harvest. According to VFA, rice prices low, the output is exported as difficult as this, the deployment of enterprise purchase 1 million tonnes of rice for temporary storage may only examined whether farmers in the profitable, but difficult to achieve 30% return rate up as targets.

Plan for temporary storage does not seem to take effect on the price of rice in the Mekong Delta. This is reflected in the price of rice in the region last week continues to go down.

According to the VFA, the price of rice in the Mekong Delta last week reduced the 50-100 / kg depending on type. Specifically, prices of dry rice in warehouses usually ranges from 4850-4950 VND / kg, wheat for about 5050-5150 dong / kg.

Price of 1 raw rice 5% broken rice produced is about 6400-6500 dong / kg depending on local produce raw rice 25% broken rice is 6100-6200 dong / kg depending on quality and local. Price finished rice 5% broken in chronic packaging is not about 7400-7500 dong / kg, 15% broken rice 7100-7200 VND / kg and 25% broken rice of about 6850-6950 dong / kg depending on quality and local.

According to Truong Thanh Phong, chairman of VFA, the rice exporters should try to overcome difficulties 6 months of the year, to July because the rice market would start better.

According to the government website, despite difficult market, has signed a number of orders canceled but Vietnam has signed contracts to more than 13% last year. In June, is expected to export about 750,000 tons, so exports will increase 6 months was 3.5 million tons, compared with the same period was 100,000 tons higher.

In Thailand, the country's farmers are also worried the government may be able to cut rice prices in temporary storage program. Currently, the Thai government bought rice for temporary storage for 15,000 baht / ton, with the condition of the grain moisture content must not exceed 15%.

According to the Bangkok Post reported, if retain moisture conditions such that grain prices were cut for temporary storage of 10,000 baht / ton as expected, the Thai farmers may not be profitable.

Recently, the Thai government to consider lowering prices for temporary storage of rice from farmers to reduce losses caused by this program. At the same time, it is also seen as a way to promote Thai rice exports in the context of the country's rice exports declined because the price is too high.