Particularly, the price of 5 percent broken rice surged from $380 to $470 per tonne, 25 percent broken rice from $350 to $430 per tonne. In this December, Philippines will continue opening another bid to purchase 600,000 more tonnes of 25 percent broken rice. As predicted, the winning price by that time will stand at $540 per tonne. The lowest winning price in recent bid was recorded at $468.5 per tonne of Thailand's Daewoo Co. $480 per tonne (CFFO price) of Vietnam while most the bidding prices were over $530 per tonne. In the coming time, the rice price is predicted to increase strongly, which is good news for the farmers.

Few months ago, before the proposal of many enterprises to cut down rice export prices, VFA was determined not to reduce rice prices further because rice transaction will be likely exciting in year end.

Two factors affecting strongly to the rice market between now to 2010 are that due to Storm No 9 and 10, Philippines lost 840,000 tonnes of paddy and following storms could cause heavier damages. So it is predicted that Philippines will import 2.5-3 million tonnes of rice in 2010.

Meanwhile, India suffered a prolonged drought and flood as well with the damage of about 17 million tonnes of rice so the country will have to purchase rice from foreign countries. Indian government decided to remove the rice import tariff (0 percent) to import three million tonnes next year. Furthermore, Vietnam will export nearly 1.2 million tonnes of rice to Africa in 2010.

To date, Vietnam has exported 5.425 million tonnes of rice for $2.42 billion (CIF) with the average price of $404.43 per tonne, up 34.1 percent in output. 6.453 million tonnes were contracted to export already, of which 350,000 tonnes will be delivered in 2010. Till late October, the country's stored rice volume reached 1,742,843 tonnes against the full year's rice export estimated at 6-6.2 million tonnes.

Sai Gon Giai Phong - November 11, 2009