VN Food Association denies rumors on 25% broken rice export halt

The Vietnam Food Association (VFA) has dismissed as groundless rumors that Vietnamese enterprises have suspended export of 25% broken rice due to an undersupply of this product on the domestic market.

Huynh The Nang, chairman of VFA and general director of Vietnam Southern Food Corp (Vinafood 2), snubbed the rumors, confirming that local rice enterprises will continue to export the 25% broken rice if they can sign good contracts.

Nang made the confirmation when reached by the Daily over the weekend days after some local newspapers quoted the Department of Processing and Trading of Agro-Aqua-Forestry Products and Salt as reporting that domestic firms had called off export of such rice.

Lam Anh Tuan, director of Thinh Phat Co. Ltd. which is headquartered in the Mekong Delta province of Ben Tre and a member of VFA, said a lack of 25% broken rice supply on the domestic market is unlike as enterprises have prepared sufficient stock for export.   

According to VFA, rice inventories of its member enterprises had exceeded 1.5 million tons as of October 8 while they had contracted to ship abroad over 2.9 million tons. This means rice exporters will have to buy some 1.4 million tons of rice to fulfill orders from importers.

However, rice supply remains ample given yields of more than 470,000 hectares of the autumn-winter crop and some 250,000 hectares of the winter-spring crop as well as a large volume of rice managed by suppliers of rice exporters.

The export rice of 25% broken rice was US$315-325 per ton before mid-September but rose to US$355-365 per ton after Vietnam won a contract to supply 450,000 tons of rice of this type to the Philippines on September 17. 

Meanwhile, a kilo of rice used to process 25% broken rice is currently sold at VND6,600-6,700 for unprocessed product and VND7,600-7,800 for processed product, up VND500-600 per kilo.

By October 20, member companies of VFA had exported almost 4.5 million tons of rice with a combined free-on-board (FOB) value of nearly US$1.9 billion. The respective figures in the first 20 days of last month were 130,000 tons and over US$52 million.

SGT

VN Food Association denies rumors on 25% broken rice export halt
 
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