Forecasters say that Vietnam will continue facing difficulties in rice exports this year because of abundant supply.
Vietnam's rice exports forecast to continue facing difficulties in 2014 According to Truong Thanh Phong, Chairman of the Vietnam Food Association, Thailand will sell out its rice in-stock rice supply at any cost to pay debts to farmers.
Meanwhile, the Thai rice output for the 2013-2014 crop is forecast to reach 20-21 million tonnes, up 1%-2% against the last crop. This would likely result in a fierce competition.
Phong said that in the days to come the association would send a proposal to the government on possible solutions to ease difficulties for Vietnamese farmers.
Lam Anh Tuan, Director of Thinh Phat Food Ltd. Co., forecast that Vietnam would face more difficulties in rice exports this year. Until now, domestic companies have not yet signed any big export rice contracts, except for the one to ship 100,000 tonnes of rice to Philippines. This contract will end on February 20.
In 2013, Vietnam exported rice to China through dealers, however this type of export has been delayed due to the higher prices of Vietnamese rice.
Tuan said that political disputes in Thailand could be an opportunity for Vietnamese rice exporters, but the abundant supply of the world market poses an obstacle for Vietnam.
According to Tuan, the long-term solution is to reduce the output of low-quality rice. He also suggested that any locality which is not well-suited for rice cultivation turn to other crops.
Concentrated markets accounted for 48% of Vietnamese rice exports during peak time, but the rate dropped to 14% in 2013. Concentrated markets include markets to which rice is exported under negotiations at governmental levels. These markets also play a very important role with the second group, commercial markets.
Đăng ký: VietNam News