Why did rice prices in the West drop sharply?

In the West, rice prices have been falling rapidly in recent days, making farmers restless. Rice farmers this season are finding it difficult to make a profit as the price of agricultural materials continues to increase.

Farmers in the West are worried as rice prices have continuously decreased since the Philippines banned rice imports for 60 days - Photo: BUU DAU

Rice prices decreased by 1,000 - 2,000 VND/kg

On August 27, Mr. Ly Tien Si (residing in My Huong commune, Can Tho city) - working on over 100 hectares of rice fields - said he updates rice prices every day.

Instead of receiving good news, he was continuously disappointed because the price of rice kept falling sharply. Mr. Si cited that in early July, the price of OM18 rice variety offered by traders at the field was about 7,500 VND/kg, but now it has dropped to just over 5,700 VND.

Not only has rice prices dropped, this year's summer-autumn rice yield also dropped significantly. Compared to the same period last year, the OM18 rice variety only yielded about 450kg/ ^1,000m2 , down 150 - 200kg/cong.

"In less than 20 days, the price of rice has dropped by nearly 1,800 VND/kg, causing farmers to feel overwhelmed. This year, due to the weather, the average cost of fertilizer and pesticides is about 2.5 million VND/cong, while productivity has decreased and the selling price is low, so rice farmers are losing money. Those who break even are lucky," Mr. Si explained.

Mr. Le Quoc Dat - residing in Dong Thai commune, An Giang province - said that the current rice price has decreased by more than 2,000 VND/kg compared to the same period.

Compared to 1 month ago, OM18 and Dai Thom 8 rice cost 5,600 VND/kg, down nearly 1,000 VND/kg. Other types of rice cost only about 5,200 - 5,300 VND/kg.

Farmers confirmed that rice prices have decreased by more than 2,000 VND/kg compared to the same period in 2024 - Photo: BUU DAU

"If farmers grow rice on their own land, they only make a profit of a few hundred thousand dong per hectare, but if they rent land, they will definitely lose money. In some places, "rice brokers" and traders do not buy. Because they think that businesses do not give them money to buy rice.

"I have already harvested 2.5 hectares, the remaining 2.5 hectares will be harvested in a few days, so I am very worried. I think the rice price has decreased because the Philippines does not import Vietnamese rice. Now the price of rice must be around 7,000 VND to make a profit," said Mr. Dat.

Ms. Hong Tham, a rice trader in Dai Ngai commune, Can Tho city, informed that due to market difficulties, some countries have temporarily stopped importing rice, so the price of summer-autumn rice has recently decreased sharply.

At its peak, about 20-30 days before harvest, traders from all over the country competed to go to the fields to meet farmers to place deposits and guarantee prices.

"This year, rice prices are unusual and we don't know what will happen in the future, so no business dares to risk making deposits with farmers in advance. To be safe, traders wait until close to the harvest to set prices. Otherwise, the risk is very high," said Ms. Tham.

Mr. Tram Quoc Long, general director of VINA Trung Long Trading Company Limited (Can Tho City), said that every year when rice crops fail and cannot be sold at a good price, debt collection will be very difficult.

"We supply all kinds of fertilizers to agents and farmers in the Western region. Every year when farmers have a good harvest and sell at a good price, I am happy because debt collection will be easier. This year is a bit tiring, but no matter what, there is a beginning and an end. If farmers are having a hard time, we will share and sympathize," Long confided.

Too much rice inventory, rice price is difficult to increase

Speaking with Tuoi Tre Online , Mr. Dinh Minh Tam - Director of Co May Company Limited ( Dong Thap ) - said that raw rice for rice export to the Philippines market has currently decreased sharply.

Before the Philippines imported, the price of raw rice was over 8,800 VND/kg, but now that this market has temporarily stopped importing Vietnamese rice, the price of rice is only under 8,000 VND/kg. The Philippines is the import market for over 40% of Vietnam's total rice export output. They are considered a major importer of our country's rice.

"Therefore, when the Philippine market temporarily stops importing, Vietnamese rice suppliers will reduce their purchases, so rice prices will decrease. In addition, we are under great pressure from the amount of rice imported from Cambodia to Vietnam, leading to a sharp decrease in rice prices," said Mr. Tam.

Many rice businesses affirm that rice prices from now until the end of 2025 will hardly increase because rice inventories in many countries are too large - Photo: BUU DAU

According to Mr. Tam, the main reason for the sharp drop in rice prices is that Vietnam's major rice importer has temporarily stopped importing rice for 60 days, the amount of Cambodian rice imported into Vietnam is too large, and the domestic market demand at this time.

"Currently, the world's rice inventory is very large, so countries will buy less rice. In addition, India will soon release more than 20,000 tons of rice to the market, so it is clear that the upcoming rice price will not be optimistic," Mr. Tam commented.

Talking about the upcoming rice price, Mr. Pham Thai Binh - Chairman of the Board of Directors of Trung An High-Tech Agriculture Joint Stock Company (Can Tho City) - affirmed that most countries are now basically self-sufficient in food, so Vietnam's rice purchasing power has decreased.

Specifically, the Philippines has banned the import of Vietnamese rice for 60 days to boost the domestic rice market, and so have several other countries.

"I think it will be difficult for Vietnam's rice prices to increase from now until the end of the year. Because the summer-autumn rice crop has not been harvested yet, and there is still the autumn-winter rice crop, so there will still be a lot of rice left.

We have been too dependent on the Philippines market as they account for more than 40% of the export market share, so we need to change our export strategy. We are participating in the bidding for more than 200,000 tons of national rice reserves to help farmers," said Mr. Binh.

BUU DAU - KHAC TAM

Source: https://tuoitre.vn/vi-sao-gia-lua-gao-o-mien-tay-giam-manh-20250827102535415.htm