Vietnam increases rice export floor price
19-JUL-2008 Intellasia | 17/Jul/2008 Vietstock
Jul 19, 2008 - 7:00:00 AM
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Vietnam has raised the floor price of its exportable 5% broken rice by 4.2% to US$750 a tonne this week, a move that makes its grain costlier than that of competitor Thailand in the international market, according to the Vietnam Association of Food and Foodstuff (Vafst).
The new floor price for Vietnam's top grade of rice, raised from US$720 last week, is based on a free-on-board (fob) basis and the delivery would be conducted this month and in August. The assignation of rice export floor price aiming to prevent exporters from selling at very low prices that would hurt farmers was imposed last month as the country lifted its ban on the export rice and set a target to ship 3.5 million tonnes for the first nine months of the year.
Vietnam's new floor price makes its 5% broken grain more expensive than Thailand's benchmark price for its 100% B grade white rice, which edged up to US$725 a tonne late last week from US$720 a tonne in the previous week.
In a separate statement, the food association said Vietnam exported 116,600 tonnes of rice during the first 11 days of July, bringing the total of shipments since the start of 2008 to 2.42 million tonnes, up 1.3% over the same period last year.
Vietnam plans to export 4.5 million tonnes for the whole year of 2008, equalling to 2007's shipments, when it ranked as the world's third-largest rice exporter after Thailand and India.
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