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Vietnam to export 2 million tonnes rice in second quarter |
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Tuesday, 18 May 2010 |
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The Ministry of Industry
and Trade (MoIT) reported that Vietnam’s rice exports are expected to
reach 2 million tonnes in the second quarter of 2010. However,
Vietnam’s rice is still expected to face challenges in the overseas
market.
MoIT said that although rice prices in the Philippines have been decreasing over the past months, the situation could be impossible in the next months. The reason is because the Philippines has faced drought during the past year, reducing rice output.
The Phillipines is forecast to lose 300,000 tonnes of rice in the May harvest if the drought continues and the country must extend rice import. Natural disasters in India are expected to decrease the country’s rice by 12% from the previous crop and forced it import more rice to balance demand.
The Vietnam Food Association assessed that the world’s rice import demand is high but complicated. The traditional markets such as the Philippines and Malaysia still need to import, rice but with just a few small contracts
VFA’s role is very important because it has to both control exports flexibly to ensure 30% profits for farmers and seek new contracts when the world’s rice price is decreasing.
(Source: CPV)
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