Vietnam rice export orders suggest H2 pace may slow

Date : 04/03/2009

Vietnamese exporters have already contracted to sell 3.65 million tonnes of rice, 73 percent of the annual target for 2009, which suggested the pace of exports would slow in the second half.

Exporters would load 3.4 million tonnes in the first half, while the remaining grain would be sourced from the next summer-autumn crop, according to the Nong Nghiep Vietnam (Vietnam Agriculture) newspaper, which is run by the Agriculture Ministry.

The loading plan was agreed at a meeting on Tuesday between the Agriculture Ministry in charge of rice production and the Industry and Trade Ministry, which oversees rice exports, it said.

The volume of rice contracted so far represents two-thirds of Vietnam's export target of up to 5 million tonnes this year, meaning exporters would slow transactions in the second half of the year. Vietnam exported 4.68 million tonnes of rice in 2008.

The Vietnam Food Association has already put a curb on rice exports, rejecting the registration of any new contracts with shipments through June, but it still allows deals with loading in the third quarter ending September.

Harvesting of the summer-autumn rice crop, Vietnam's second biggest after the current winter-spring crop, peaks in August.

Rice loading in March was projected to rise to 800,000 tonnes, which would be a record, beating the 650,000 tonnes loaded last month, the highest ever.

Exports of the grain in the first two months doubled from the same period last year to 919,000 tonnes, the government has said.

Source: Reuters