Sticky rice exports from Mekong Delta decline

A file photo of a sticky rice field. The local sticky rice market has witnessed a slump in exports as major importer China imposed new tariffs of up to 50% on this type of grain, starting July 1 - PHOTO: TRUNG CHANH

CAN THO – The sticky rice market in the Mekong Delta is witnessing a slump in exports as China, the largest importer of Vietnamese rice, imposed new import tariffs of up to 50% on glutinous rice, starting July 1, raising the rate by an additional 45 percentage points compared with previous tariffs.

According to Tran Quoc Tuan, a rice trader for exporters in the Mekong Delta region, business in the sticky rice market has come to a halt as the exporters cannot send their rice to the neighboring country.

The prices of fresh unhusked sticky rice, which is harvested by combine harvesters, have dipped sharply to VND4,400-VND4,500 per kilogram from VND6,100-VND6,200 per kilogram this year, while the prices of sticky rice have also nosedived from VND11,800-VND12,000 per kilogram to VND8,200-VND8,300 per kilogram, Tuan said.

He stressed that some traders had continued to stockpile this type of grain, waiting for prices to bounce back, as they might incur significant losses if they sell the rice to exporters at this time.

Luu Thi Lan, deputy director of Gentraco JSC, attributed the decline in exports to China’s recently adjusted import tariffs on sticky rice and a stronger U.S. dollar.

Over the years, China has been the primary rice market for Vietnam, with more than 90% of the total sticky rice volume being shipped to the northern neighbor every year.

Rice exports to China in June hit the lowest level in the first half of the year, reaching no more than 50,000 tons, down by some 220,000 tons compared with the export volume in April, the highest this year, according to rice exporters.