Stakeholders call for state intervention to stabilize prices following Philippines’ halt in Vietnamese rice imports

The Philippines officially halted rice imports from Vietnam for 60 days, starting September 1.

Rice prices in the delta began trending downward, causing widespread concerns among farmers currently harvesting their autumn-winter crops.

Nguyen Van Ngoi, a farmer in Co To Commune under An Giang Province, who is cultivating five hectares of OM8 rice this season, said that despite soaring input costs, rice prices have dropped significantly compared to the same period last year.

“Unless rice prices stay above VND6,000 [US$0.22] per kilogram, farmers will not make a profit,” Ngoi said.

“If prices fall to just over VND5,000 [$0.18], we will suffer a loss."

He asked the government for deploying a program to purchase rice from farmers or exploring more potential markets to keep rice prices afloat.

In Dong Thap Province, Huynh Thien Liem from Truong Phat Cooperative reported that recently-harvested OM18 rice is fetching only VND5,500 per ($0.2) kilogram.

At current yields of 5-5.5 metric tons per hectare, farmers barely break even on owned land and incur losses on leased plots.

Nguyen Van Hung, director of Thang Loi Cooperative in Dong Thap, which manages over 400 hectares to be harvested this week, echoed similar concerns.

“Prices have dropped sharply, now ranging between VND5,400 [$0.2] and VND5,800 [$0.21] per kilogram, depending on the variety,” he said.

“No company is committed to buying in advance, while traders are waiting until the last minute to offer prices, fearing a further drop after the Philippines’ suúpension."

In Ca Mau Province, many farmers said that rice prices are on the downward trend.

Some rice varieties have plunged to around VND5,200 ($0.19) per kilogram, leaving growers with little to no profit.

Nguyen Thanh Huan, deputy director of the An Giang Department of Industry and Trade, said the province had asked exporters to increase rice purchases to prevent price manipulation and protect farmers.

Meanwhile, Tran Thanh Hiep, deputy director of the An Giang Department of Agriculture and Environment, shared that exporters had anticipated the Philippine move and began diversifying markets in advance.

While prices have declined, most farmers are still seeing small profits, he said.

“The remaining rice supply is not significant, and we haven’t seen panic selling yet,” he added.

In Ca Mau Province, vice-chairman of the provincial People’s Committee Le Van Su has instructed relevant agencies to disseminate information about the import suspension, advising cooperatives, producers, and traders to adjust their business strategies.

Farmers are being guided to store rice, avoid selling at low prices, and prioritize domestic or alternative export contracts.

Su also emphasized the need for provincial support in connecting farmers with traders and encouraged rice exporters to explore new markets through e-commerce platforms and trade fairs.

Nguyen Chi Thanh, head of the rice division at An Giang Import-Export Company (Angimex), noted that domestic prices had already been falling before the suspension.

“Since the halt was in effect, it has been even harder for companies to continue buying, let alone supporting prices,” he said.

Rice prices have dropped by over VND2,000 ($0,07) per kilogram compared to the same period last year, with some areas now selling below production cost, Thanh said.

Importers in other markets are also holding off, waiting to see if prices fall further, he noted.

“To stabilize the market and support farmers, the government should implement a temporary stockpiling program,” Thanh urged.

“Without state support, prices could fall even more, while local exporters are under pressure to liquidate existing inventory and minimize financial risks,” he added.

Rice export revenue hits $3.1bn in January-August

Vietnam exported some 770,000 metric tons of rice in August, worth nearly $344 million, according to the Ministry of Agriculture and Environment.

This brought total exports during the January-August period to 6.3 million metric tons worth $3.1 billion, up 2.2 percent in volume but down 17.5 percent in value year on year.

The Philippines accounted for 42.4 percent of Vietnam’s rice exports during the eight-month period.

The ministry also reported that global rice prices declined in August, with Indian rice hitting its lowest level since August 2022 and Thai rice falling by $16–$20 per metric ton due to weak demand.

Vietnam’s rice prices had briefly surged because of pre-suspension stockpiling by Philippine buyers, but have since begun to drop by an average of $12 per ton for 5-percent broken rice.