Rice export philippines1/20/2024 An alliance of rice exporters between Vietnam and Thailand shall be able to limit the influence of Philippines on each country but also influence rice price around the world. Vietnam and Thailand together account for over 50% of the global rice market. The OPEC comprise of 10 nations and account for 50% of world petrol output and are capable of manipulate the global oil price. So why don’t Vietnam and Thailand cooperate to counter Philippines’ pressure? Philippines has put Vietnam and Thailand against each other to export rice at a low price. Why don’t Vietnam and Thailand cooperate to export rice? Policies for rice production development, including the restructuring of production will be meaningless. If Vietnam and Thailand do not cooperate to negotiate for a more favorable exporting price to Philippines and other importers, rice price will continue to hover around production price. Excluding the amount sold to Philippines, each year Vietnam and Thailand will have an acceptable stock of 1 million ton.Įxporting 1.8 millions ton of rice to Philippines at $340, Vietnam and Thailand will have to accept the same price from other countries for 18 million tons. In fact, in many years, Vietnamese 25% broken rice have been restraint to under $340/ton, which is very close to production price of rice.Įach year, Philippines buy approximately 1.8 tons of rice, which contributes to about 10% of rice export of Thailand and Vietnam. Under such circumstance, Vietnam and Thailand will have to compete to set price acceptable by Phillipines. This means Philippines effectively retain the right to impose rice price. On 5-6, Vietnam reached an agreement to supply 150,000 tons of rice for Philippines after a price compromise with Philippines National Food Authority.Īccording to a research carried out by TBJTS, at the end of February, Vietnam has signed a contract to supply 300,000 tons of White Rice to Philippines according to G2G after reducing the price to the level of price offered by Thailand.Īlthough other countries can offer their price in bidding sessions, but they must reduce the price to a lower point than ceiling price, or reference price, given by NFA. If every country offers a price which is higher than the ceiling price, Philippines will reject all offers and organize rebidding, or negotiate independently with each country for an equal or lower price than the ceiling price. In the recent bidding session for 100,000 tons of rice on 16-06, Vietnam offered the lowest price of $416/ton and was rejected because the ceiling price imposed by Philippines was $408,14/ton. In the bidding session for the 250,000-ton rice contract with Philippines on 5-6, Vietnam and Thailand both offered a higher price than the price of $340/ton offered by Philippines for White Rice 25% broken rate. A ceiling price, or reference price, is imposed and if Vietnamese and Thai exporters want to reach a deal, they have to set not only the lowest price, but lower than that ceiling price. Normally, Vietnamese and Thai rice exporters have to fly to Philippines to attend bidding session. However, exporting rice with a ceiling price set by Philippines in such a way is harmful and Vietnam may be better off without it. This kind of statement then unnerve and lead pessimists to believe that rice exporting is hitting market-breaking obstacle. In the first eight months of the year, Vietnam exported nearly 5.9 million tonnes of rice, earning $3.2 billion, up 37 percent year-on-year, according to Vietnam's general statistics office.Occasionally, Philippines make an announcement stating that they will not import rice because domestic production has satisfied market demand. Global prices soared to their highest levels in nearly 15 years last month. In July, India, the world's biggest rice exporter, banned some overseas rice sales to calm rising prices at home. But the Philippines cannot produce enough for itself and has been one of the world's top importers of the grain. Rice is a basic staple in the country of 110 million people. Marcos said the agreement "would stabilise the rice supply and pricing in the Philippines amid the current volatility", the statement added. The agreement would be for five years and would see Vietnam export rice to the Philippines, according to a statement from the Philippine presidential palace. "The two sides agreed to soon discuss and sign an inter-governmental agreement on rice trade cooperation to together ensure objectives on food security amidst complicated developments in the recent global food supply chain," a statement on Vietnam's official government website said Thursday.
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