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Government stockpiling causes rice prices to rise
Rice prices have risen sharply in recent days thanks to the Government's programme to buy one million tonne of the grain for its temporary reserve, according to the Viet Nam Food Association.
VFA deputy chairman Pham Van Bay said the average price for long-grain paddy is VND5,900-6,000 per kilo, and for normal paddy, VND5,400-5,500.
This represents an increase of VND800-1,000 from before June 15 when food companies began to buy rice under the Government plan, he said.
By July 21 they had bought more than 65 per cent of the planned stockpile of one million tonnes.
An improvement in exports has also contributed to the hike in prices, he said.
Some rice exporters have been selling 5 per cent broken rice for US$395-405 a tonne, up more than $20 from a month ago.
With new developments in the global market, VFA announced new floor prices for rice exports that took effect on July 18.
The new minimum price for 25 per cent broken rice has increased from $365 per tonne to $375.
The programme to stockpile one million tonnes kicked off on June 15 and is scheduled to end on July 31