HANOI (Commodity Online) : World’s second largest rice exporter, Vietnam is all set to harvest its winter-spring rice crop amid sharp drop in local prices.

The current crop, the biggest of Vietnam's annual three, is a key part of export aims of 5.5 million to 6.2 million tones this year, compared to a record 6 million tones last year when the winter-spring harvest produced a record 10.4 million tones.



Vietnam Food Association however urged its members, mainly exporters, to buy 1 million tones of milled rice equivalent to 2 million tones of unhusked grain from a winter-spring harvest forecast at a near record 10 million tones, and keep it off the export and local markets for at least two months.

It said an export price floor at $440 a tone, free-on-board for 5 percent broken rice and $420 a tone for the 25 percent broken rice remained unchanged.

The stockpile decision was reached at an industry meeting here as export prices have dropped around 8 percent this week from before the week-long Tet holiday on a lack of demand during harvest.

Last year, exporters placed nearly 1.5 million tones of rice in warehouse stockpiles apart from ordinary purchases and food association members bought nearly 1 million tones in August and September.

Country’s top exporter Vinafood 2 held another 500,000 tones between last November and January 20, 2010.

The grain was not for domestic market sales and traders said quality has now worsened while buying demand remains thin.

Exporters in Thailand said they feared buyers may default on contracts already in place after prices fell for the fourth-straight week and were considering stockpile plans as well.

Post your comment  (0)

Connect:

Post to Twitter

Post to Facebook