Rice inches up ahead of stockpiling plan

February 21, 2013 | 09:18

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Export rice prices have inched up after several weeks of decline, and members of the Vietnam Food Association (VFA) have been buying paddy from farmers, even during the Lunar New Year holiday break.

Before the holiday, the Prime Minister approved a plan for purchase of one million tons of winter-spring rice for temporary storage, which is expected to begin this Wednesday.

Farmers in the Mekong Delta are harvesting the winter-spring crop with an area of about 250,000 hectares and a yield falling 20pct year-on-year. In many provinces like Tien Giang, Long An and Dong Thap, the 2012-2013 winter-spring rice has been partially harvested.

Therefore, VFA asked its member companies to buy rice from farmers during the Lunar New Year holiday.

Nguyen Phuc Anh, director Tan Tai III Company at Ba Dac Market in Tien Giang’s Cai Be District, said consumption declined sharply during Tet, but thanks to the rice temporary storage program starting soon, rice prices have been relatively stable in recent weeks.

Some paddy varieties slightly rose last week. Dried paddy stood at VND5,100-5,200 per kilo, an increase of VND100 over the preceding week.

Meanwhile, paddy for the 25pct broken rice sold at VND6,600-6,700 a kilo, up VND50, and the finished 5% broken rice at VND7,800-7,900.

In January, the country exported some 404,000 tons of rice worth $183.4 million, FOB Vietnam ports, and $184.3 million in CIF value.

VFA forecast the export performance may improve next month, and that rice prices will then edge up further.

SGT

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