The risk of loss of market, prices fell
Mr Feng said Myanmar has recently signed a memorandum of understanding to provide 500,000 tons of rice to Indonesia when necessary and if there is a surplus of rice in Myanmar. In the beginning of 2013, Indonesia announced that it would self-sufficiency, reduce the amount of rice imported by focusing contract agreement from government Indonesia and Vietnam. There is information Malaysia, the Philippines is also in talks to buy rice from Myanmar because ... cheap.
Not just "beat up" the "guts" of Vietnam and Myanmar are encroaching into more major markets. Mr Phong said rice export market by 2012 all of Vietnam so far is China, accounting for one third of rice. But with cheap power, Myanmar rice exports as share of Vietnam, Pakistan, Thailand, China narrowing.
According to Professor Vo Tong Xuan, if you look at the price of rice in Myanmar to reduce not only lost but lost their profit position of Vietnam rice. In pictures: Handling export rice at Saigon Port, Vietnam. Photo: CTV
Present value of 5% broken rice of Myanmar is 300 USD / ton, 25% broken rice more than 200 USD / ton. The price is too low. Since early this year, Myanmar has sold through more than 630,000 tons of rice quota for Chinese customers with the type of money allocated to each day. This works Vietnam's rice exports to this decline, the number of export contracts canceled several hundred thousand tons respectively rice. China is based on the price of Myanmar to wait Vietnam rice prices lower to buy. Many businesses (DN) China this opportunity and price pressure Vietnam enterprises are forced to sell their low prices because of demand from other markets is less.
Mr Lam Anh Tuan, Director of Food Thinh Phat Co., Vietnam's rice export prices are slipping to 375 USD / ton for 5% broken rice, down 35 USD / ton compared to the price floor making associations 2-2013 month. On the actual purchase price was 385 USD / ton. "Myanmar's rice price is too low, the importers were rushed to buy. If you miss contracted with Vietnam, they will excuse the low price squeeze "- he said.