The prices of coffee, rice, and rubber – the three key farm produce export items of Vietnam – are expected to soar up in the country due to thin supplies and high demand, according to the Price Executive Department under the Ministry of Finance.
Rising export demand coupled with low domestic reserve of just 40,000 tons of coffee are likely to push its prices up in the coming time from VND20,100-21,700 per kilo at the moment.
The International Coffee Organization predicted that global coffee output would reach 106.6 million packs this year, while demand would reach 117 million packs.
This situation seems set to ensure domestic prices remain high until the local harvest begins in October with an estimated output of 11.5 million 60-kilo bags, down 14 per cent on-year.
At the same time, an increase in the price of export rice has also backed local prices to rise in recent weeks. Summer-autumn unprocessed rice is now selling for VND2,500-2,600 per kilo, the highest level in recent years. In the Mekong Delta, the price of rice has increased by VND40-70 per kilo against last week.
Possibly decreasing summer-autumn rice output, caused by unfavorable weather and insect infestation nationwide, is another factor to push up the prices shortly.
According to experts, the price of export rubber is likely to increase at the end of the year from current US$2,193-2,200 per ton thanks to increased demand in major markets, including the US, China and Europe.
Vietnam currently ranks second among the largest rice and coffee exporters in the world behind Thailand and Brazil with annual shipments of 5.2 million tons and 780,000 tons, respectively.
The country has recently surpassed the Philippines to take the tenth position in the world and fourth in ASEAN in term of woodwork exports, which last year brought in US$1.6 billion to Vietnam.
Economy & Urban
Vietnamese
