Developing Countries Will Lead Global Rice Import Growth in 2013-22, Says USDA Rice growers positive California MG prices are UP Russia MG Harvest coming to end Egypt open rice exports Vietnam’s rice export in tough competition with India Thai rice exports in May Rise Above Target This Year Viet-Nam Rice exports likely to fall this year
Australia Medium Grain Rice #1 $ N/A    Egypt 101 #2 $760    Egypt 178 #2 Rice $730    EU Prices Baldo €660    EU Prices LG-A Ariete 5% €550    EU Prices MG Lotto 5% €500    EU Prices RG Balilla 5% €500    Russia Rapan $ 700    USA Jupiter Paddy $375    USA Calrose #1 Paddy $480    USA Jupiter Rice $630    USA Calrose #1 $830   

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Cash crunch causes rice exporters to miss out
Rice exporters have called for measures to ease their access to credit, as their capital shortage is causing them to miss potentially lucrative export opportunities.

Many rice exporters have reported being forced to buy paddy and rice for export at small volumes, or even having to abandon purchase altogether, due to capital shortages.

Meanwhile, the rice price on the world market remains high, and the Mekong Delta provinces – which comprise the country’s largest granary – have reported a bumper winter-spring crop, 160,000 tonnes more than last year’s harvest.

The director of the Tien Giang Food Company, Truong Van Hua, said his company was permitted to take out bank loans of VND150 to 250 billion for previous winter-spring crops, but was not allowed loans of more than VND50 billion this year.

This figure is too small to allow his company to buy the rice needed to meet export contracts, he complained.

Rice exporters calculated that, as the rice price on the global market has increased by VND250-300 per kilo over the same period last year, every rice exporter with an annual export capacity of around 100,000 to 120,000 tonnes will require capital of at least VND200 billion to meet export contracts.

The Southern Food Corporation (SFC), the country’s largest rice exporter, said that while its demand for capital is up to roughly VND 90,000-100,000 billion for this crop, the HCM City’s Bank for Foreign Trade of Viet Nam (VCB) has loaned the company only VND600 million.

The bank’s branch director Nguyen Phuoc Thanh admitted that the SFC cannot obtain the necessary capital for effective trade, even if it borrows from four commercial banks as well as the VCB, since the banks are not allowed to loan more than 15 per cent of their net equity capital.

The Viet Nam Food Association forecasts that the average price of exported rice will reach US$255 a tonne for 2005, $44 above the average price in 2004.

The promising figures have led the association to predict that Viet Nam’s food industry will obtain its 2005 export revenue target of $1 billion.
MGR Archive 29.5.2005
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Region Type Price  
Russia Rapan $ 700
USA Jupiter Rice $630
USA Calrose #1 $830
USA Calrose #1 Paddy $480
EU Prices Baldo €660
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