Rice exports in 2020 achieve dual targets
Contrary to the downward trend of prices of many commodities, rice is one of the items in the agricultural group that maintains both export volume and prices, while domestic food security is still guaranteed. In 2020, the export activities in general and rice export in particular will face many difficulties and challenges, mainly due to the extremely complicated impact of the Covid-19 epidemic.
Facing such a situation, the Government, the Prime Minister and the Ministry of Industry and Trade have proactively implemented many measures to ensure epidemic prevention and food security, and remove difficulties for export activities. import in general and rice export in particular, helping people to consume paddy and rice with the best quantity and price. So far, it can be seen that both the major goals set by the Government and the Prime Minister for rice production and export have been achieved. Food security is absolutely guaranteed in 2020, even in the most difficult times, when the epidemic breaks out and foreign buyers increase strongly to buy rice from Vietnam.
According to estimates of the inter-ministry, rice exports in 2020 will reach 6.15 million tons, worth about $ 3.07 billion. Although the amount of rice exported decreased by about 3.5% compared to 2019, mainly for the purpose of ensuring national food security, the export value increased by 9.3%. The average export price for the whole year is estimated at 499 USD / ton, an increase of 13.3% compared to 2019. This is the highest average annual price in recent years, bringing great benefits to rice farmers. . Regarding the types of exports, after 11 months, the white rice export value accounted for 40.3% of the total turnover; jasmine rice and fragrant rice accounted for 37.7%; sticky rice accounts for 17.6%; japonica rice and Japanese seed made up 4.2%. Vietnam has sharply reduced exports of low-grade rice, instead increasing its high-grade rice, fragrant rice, becoming a market capable of and a variety of premium rice for many markets, including markets. Top fastidious rice in the world such as Korea, Europe … Vietnam’s rice export structure continues to shift to fragrant rice, high quality rice with higher price and added value. At the same time, rice farmers and traders are also more and more interested in improving quality, traceability and towards meeting the strict standards of demanding markets such as the EU, Korea, United States … TS. Vo Tri Thanh, an economist, said that while Vietnam’s exports of many agricultural products tended to decrease due to the influence of Covid-19, the export prices still achieved positive results because this is essential goods, the market still has high demand.
This trend is expected to remain in the coming time, a positive sign, positively contributing to the export results in the coming time. The results of rice export in 2020 show the great efforts of the people and enterprises in overcoming difficulties and challenges of natural disasters and epidemics to maintain rice export turnover. Besides, there is the close, practical and timely management of the Government, the Prime Minister, ministries and branches. The Ministry of Industry and Trade hopes that with the efforts of all parties, rice exports in 2021 will continue to achieve new achievements, with the ultimate goal of ensuring food security and consuming all paddy and rice. Goods to the farmer at the most profitable price. According to the Vietnam Food Association, the forecast of Vietnam’s rice exports in the first quarter of 2021 is still good when the main export markets of Vietnam such as the Philippines, Africa … continue to sign rice purchase contracts from Vietnam.
The Asian rice market started to get hot again when a series of very potential customers are urgently buying, including China, Bangladesh, Philippines … The opening opportunity for Vietnamese rice is yes, the remaining problem is that we need to continue to advise farmers to control the pesticide residue well so that Vietnam’s rice grain will continue to win big. In the coming time, according to experts, businesses should focus on deep quality processing. To re-plan rice growing areas, orient markets for sale, and strengthen export hubs with clear information and laws.
In particular, with the current high price of rice, there will be a situation in which enterprises compete unhealthily, with short-term thinking, fear of not being able to sell rice, so they will compete to make a profit. This is an opportunity to reorganize rice export activities. Vietnamese businesses should select products and market segments according to their capabilities and business size. We have to produce products according to users’ needs, not sell what we have. In particular, rice sold to the market must be absolutely safe and clean.
Source: VLR
If you need assistance with import and export of international goods, you can contact our Smart Link team. guide service consulting as well as necessary related customs procedures.
