The prices of rice in the Mekong Delta region are on the rise, challenging rice traders and exporters in Vietnam.

Many rice traders said that they have failed to receive a sufficient volume of ordered rice as sellers are waiting for higher prices.

Meanwhile, rice exporters are hesitant to sign new rice shipment contracts due to a lack of available grains. 

Truong Van Chinh, director of Chon Chinh Import Export Company in the Mekong Delta province of Dong Thap, told Tuoi Tre (Youth) newspaper that the firm had negotiated with farmers on increasing rice prices from the previously pledged levels.

The firm and these farmers had earlier reached a consensus on a purchase price at VND7,000 (US$0.29) per kilogram.

However, the rate has climbed to VND8,000 ($0.33) a kilogram, forcing the firm to revise the purchase price to get enough rice.

Pham Thai Binh, general director of Trung An Hi-Tech Farming JSC, said that sky-high rice prices would affect the rice export contracts which the firm signed when the rates were lower than the current levels. 

“Firms with abundant rice inventories will not be affected when following up on their contracts, but other rice exporters which have yet to access rice sources will be in turmoil due to their previously-signed export agreements,” said Binh.  

Exporters might sustain huge losses if they buy rice at this time when prices are skyrocketing. Meanwhile, global rates are predicted to fall to $620-630 a metric ton from the current $630-640.

The Dong Thap Province Department of Industry and Trade will keep a close watch on export activities to promptly remove obstacles facing exporters, said Vo Phuong Thuy, deputy director of the agency.

“We will work with the provincial Department of Agriculture and Rural Development to beef up rice cultivation and provide high-quality grains to meet the need,” she added.

Rice prices on an uptrend

The prices of fragrant rice of all types range from VND16,000 ($0.67) to VND20,000 ($0.84) per kilogram at Cao Lanh Market in Dong Thap Province.

The rice prices have risen VND1,000-2,000 ($0.04-0.08) per kilogram compared to those set last week, according to many rice traders.

Nguyen Thi Kim Thuy, who resides in Ward 4, Cao Lanh City under Dong Thap Province, said that she bought a bag of rice and a broken-rice package two days earlier.

However, the price of a 50-kilogram bag of rice jumped VND15,000 ($0.63) on Monday.

“Rice is scarce," said N.L.C., a rice vendor in Rach Gia City under Kien Giang Province.

"One day ago, I placed an order for a combined five metric tons of rice from wholesalers in Can Tho City and Tien Giang Province, but I received less than one metric ton.”

Like us on Facebook or follow us on Twitter to get the latest news about Vietnam!