Vietnamese rice prices fall for third day as Asian benchmarks strengthen
Vietnamese raw rice prices fell for a third consecutive day, while export offers declined by as much as $20 per tonne. Competing benchmarks in Thailand, Pakistan and India moved higher, widening Vietnam’s price advantage in some segments but putting pressure on exporter and miller margins.
Domestic raw rice extends decline
Rice prices in Vietnam’s Mekong Delta continued to weaken on August 27, moving against firmer quotations in other major Asian producing countries. Vietnambiz reported that raw rice prices fell by 200 dong per kilogram from the previous day, marking their third consecutive decline since the start of the week. IR 50404 and CL 555 raw rice were both quoted at 8,900-9,000 dong per kilogram.
Prices for processing by-products were steadier. Fragrant broken rice remained at 8,650-8,750 dong per kilogram, while rice bran traded at 7,550-7,650 dong. Data from An Giang province’s Department of Agriculture and Environment put fresh OM 5451 paddy at 6,500-6,600 dong per kilogram and OM 34 at 6,000-6,100 dong. Fresh OM 18 and Dai Thom 8 were each quoted at 6,800-7,000 dong, while fresh IR 50404 stood at 6,300-6,400 dong per kilogram.
Vietnamese export offers move lower
Export quotations also declined. According to the Vietnam Food Association, Vietnamese Jasmine rice lost $4 per tonne to $534-538 per tonne. Fragrant rice with 5% broken content recorded the sharpest adjustment, falling by $20 to $470-480 per tonne. Offers for standard 5% broken white rice were unchanged at $438-442 per tonne.
The movement contrasted with gains elsewhere in Asia. Thailand’s 5% broken rice rose by $3 to $453-457 per tonne, leaving its quotation above the Vietnamese range for standard rice. Pakistan’s comparable product gained $5 to $406-410 per tonne. In India, 5% broken white rice increased by $4 to $364-368 per tonne, while 5% broken parboiled rice also rose by $4 to $370-374 per tonne. India therefore remained the lowest-priced origin among the benchmarks reported, despite the latest increases.
India faces licensing and logistics risks
India’s export sector is dealing with separate regulatory and logistical pressures. China suspended the licences of some Indian exporters over allegations involving genetically modified rice. Nevertheless, Chinese demand for Indian rice was maintained, according to the source. On August 25, Indian 100% broken white rice was assessed at $314 per tonne FOB, up $30 from the previous month, supported by demand from China and domestic ethanol production.
Mukesh Jain, president of the Chhattisgarh Rice Exporters Association, told Platts, part of S&P Global Energy, that exporters were seeking to diversify their destinations. He identified the Philippines and Latin America as potential markets, noting previous shipments to Venezuela and Paraguay. Jain said India had no domestic rice shortage and expected maximum output in central India’s coming Kharif crop, although insufficient rainfall could affect parts of the south. He also warned that limited storage and transportation capacity could push more millers and micro, small and medium-sized enterprises out of the market, increasing the pricing influence of larger companies.
