Hanoi (VNA) -🍃 Amid favourable market trends and prices, the export of Vietnamese rice is achieving positive results in both volume and value. However, this also raises concerns about domestic food security.

Global rice prices are now at their highest level in 11 years. Predictions suggest that they could rise even further due to India's immediate ban on rice exports (except Basmati rice). India currently accounts for 40% of global rice exports, therefore, the ban has led to concerns about a shortage of supply. As the world's third-largest rice exporter, Vietnam will be positively affected by India's export suspension. However, this opportunity also presents a challenge for the Southeast Asian nation. It must meet demand from importing partners who require at least 4 million tonnes of rice in the second half of 2023, and ensure sufficient domestic reserves and consumption. According to Tran Thanh Hai, Deputy Director General of the Agency of Foreign Trade under the Ministry of Industry and Trade, Vietnam's current rice production is very good, hence a stable supply for export. Moreover, expanding demand from countries, especially traditional markets like China and the Philippines, will help ensure the country’s rice export volume this year. However, the department also emphasised that traders must be prepared with precautionary measures and tools to mitigate risks, including price risk and potential issues that may arise during the execution of rice contracts. Nguyen Nhu Cuong, Director of the Department of Crop Production under the Ministry of Agriculture and Rural Development, noted that in the long run, rice export businesses need to collaborate with farmers and cooperatives to establish stable supply sources, ensuring stable quantities and prices. Regarding concerns that high demand and prices for rice exports could affect domestic food security, Cuong said that rice production is currently proceeding as normal, and the needs for the domestic food security and consumption are still being met. By May 2023, the country had harvested over 17 million tonnes of rice, a 0.7% increase compared to the same period last year. This year, Vietnam is expected to harvest about 43 million tonnes of rice, ensuring food, livestock raising, processing, reserves, and exports. As a result, the stable supply of rice is guaranteed, and the volume of rice export is on track. Cuong asserted that there will be no shortage of supply. Ensuring food security and meeting domestic consumption demand are the top priority of the Party and Government, the official affirmed. In addition, according to the Vietnam Food Association (VFA), rice exports should not be restricted because the nation still maintains its 1.3 million tonnes of rice imports, mostly from Cambodia, to meet domestic demand. VFA Vice Chairwoman Bui Thi Thanh Tam also pointed out that the General Department of State Reserves recently announced a rice procurement tender, which will increase the demand for rice. Recently, the Agency of Foreign Trade under the Ministry of Industry and Trade has sent several documents to rice export companies and the VFA regarding the organisation of grain and rice procurement and consumption, ensuring benefits for rice growers according to current policies, balancing exports and domestic consumption, stabilising rice and grain prices in the domestic market, monitoring market conditions, and suitable production and export plans to ensure effective exports./.