As of May 18, rice exports reached over 2 million tonnes with US$875 million in (free-on-board) FOB value and nearly US$912 million in Cost, Insurance and Freight (CIF) value, up 15% in both volume and value from the same period last year.
The increase was buoyed by the surge gained in the first quarter thanks to several pending purchase orders under government-to-government (G-to-G) contracts with Indonesia, the Philippines and China signed in 2015.In April, rice exports exceeded 453,000 tonnes, earning US$212 million in FOB value, down 20.5% in volume and 7.5% in FOB value from the previous month.
The figures also presented a drop of over 30% in volume and 21.33% in FOB value compared with the same period last year due to a lack of collective contracts.
VFA forecast rice exports will increase in the second half, mostly in the three key export markets of the Philippines, Indonesia and China and at a higher price. This increasing trend in price is stemming from falling output due to the impacts of the El Nino phenomena hitting major rice suppliers, namely Thailand, Myanmar, Cambodia, and Vietnam, according to VFA.
