Preventing rice speculation

In accordance with the directives of the Government's Prime Minister and the Ministry of Industry and Trade, the Vietnam Directorate of Market Surveillance has instructed centrally-run provincial and municipal Departments of Market Surveillance to intensify inspection and management of rice product speculation, hoarding, and unreasonable pricing.

Local Department of Market Surveillance is tasked with enhancing management over areas of activity, implementing their major measures to grasp the market situation, the developments of supply – demand, and the prices of rice products in order to formulate a plan for inspection, surveillance, and the proposal of market-stabilizing measures.

The Vietnam Directorate of Market Surveillance assigned its departments to actively collaborate with competent parties in the area of activities to strengthen close monitoring of the rice price market, inspect and control business establishments, wholesalers, retailers, markets, supermarkets, trade centers, warehouses in order to control supply, selling prices, prevent violations of price listing, speculation, hoarding, pricing buying and selling agri-products.

"The entire force will continue to strictly follow the instructions of the Government and the Ministry of Industry and Trade to strengthen inspection and control of the market, especially for rice products, in order to contribute to firmly ensuring food security in the country and to promote sustainable rice production and export," a representative of the Directorate of Market Surveillance said.

The Directorate instructs the Departments of Market Surveillance of the provinces and cities to strengthen inspection and prevent the transportation and trading of rice of unknown origin; coordinate with relevant agencies to closely monitor rice market prices; inspect and control business establishments, wholesale and retail outlets, and warehouses in order to control supply, selling prices, and prevent illegal activities or violations in the field of market management for rice; and coordinate with relevant agencies to closely monitor rice market prices.

It is well-known that local Departments of Market Surveillance have strengthened inspection and control for rice products in recent years, detecting and addressing numerous violations. A multidisciplinary inspection team of 389 Mo Cay Nam district, headed by the Department of Market Surveillance of Ben Tre province, seized 29.4 tons of Indian rice from a business household in Mo Cay Nam district in September 2022.

The Department of Market Surveillance of Ben Tre province inspected a rice enterprise in An Ngai Trung commune, Ba Tri district, Ben Tre province, beginning July 2023. Detecting and confiscating 52 tons of imported white rice from India without Vietnamese sub-labels, with a total value of over USD 600 million. Principal infractions include trading and trading in rice without information identifying the origin and origin of the products on the package; prices are not listed; illegal import.

As a result of export restrictions in certain nations, the price of Vietnam's exported rice has attained its greatest level in 15 years. The price of 5% broken rice has increased to between 590 and 600 USD per tonne, up from 550 to 575 USD per tonne the week prior.

According to the General Department of Vietnam Customs, the average price of Vietnam's exported rice in the first half of 2023 was 539 USD per tonne, a 10.2% increase over the same period in the previous year.

After India's decision to restrict rice exports, exporters anticipate further price increases for the grain. India issued a prohibition on rice exports on July 20, in an effort to ensure adequate domestic availability at affordable prices. As a result of this prohibition, rice prices have continued to soar in other major rice-exporting regions of Asia. Thailand's 5% broken rice increased to a 15-year peak of USD 627-630 per tonne, significantly higher than the previous week's price of USD 545 per tonne.

The Ministry of Agriculture and Rural Development and the Vietnam Food Association have recently reported that the export price of Vietnamese rice has risen to an all-time high.

Specifically, the export price of 25% broken rice was USD 618-622 per ton, surpassing Thailand's price by USD 57 per ton, while 5-percent broken rice from Vietnam sold for USD 628-632 per ton, USD 10 per ton more than Thailand's rice price.

According to exporters, the price per ton of Vietnamese rice has risen by approximately USD 100 in the past two months