Vietnam halts new rice exports because of low reserves

Vietnam halts new rice exports because of low reserves

Associated Press, Hanoi

Vietnam's government has ordered traders in its main rice- growing region to stop offering new rice export contracts until next February because of low reserves, a Trade Ministry official said Wednesday.

Vietnam is the world's second-largest rice exporter after Thailand.

The official in the ministry's Rice Management Office said the order was issued after ministry officials saw low reserves in the domestic market.

"We need to maintain a stable domestic market for food supply until we have a new harvesting season," said the official, who spoke on condition she not be identified by name.

Vietnamese farmers have started growing their winter-spring rice crop and harvesting will be from February to April next year.

Vietnam's rice offer prices have risen in recent weeks as a result of the low domestic supplies.

Some traders are facing losses because they signed contracts at low prices a few months ago and now rice prices are very high, a trader from Vinh Long province said.

Domestic rice prices are currently between 2.8 million (about US$186) and 2.9 million dong a metric ton, up from 2.4 million dong in May and June, he said.

On Wednesday, traders said the indication price for 5 percent broken rice is $192 per ton, but said they were not signing any new export deals.

Vietnam's rice traders shipped 3.33 million tons of rice in the first 10 months of the year, valued at $546 million, up 9.6 percent on year in terms of quantity, but down 6.1 percent in value because of low world market prices.