Vietnam's higher first half rice sales cap future deals

25 Jun, 2008

Vietnam could export 2.5 million tonnes of rice in the first half of the year, state-run media reported on Tuesday, a jump of 4.2 percent from the same period last year that will leave little room for more exports until after September.
Along with 600,000 tonnes Vietnam sold last week in a deal with the Philippines, the country can only sell 400,000 tonnes more through September given a government cap on exports of 3.5 million tonnes for the first nine months.
Revenues from January to June exports would be $1.5 billion, double the first half of 2007, the official Vietnam News daily quoted General Statistics Office figures as saying. Last week Vietnam, the world's third largest rice exporter, lifted a rice ban is has had in place since March, but imposed the shipment limit even though officials said the government would revise up its annual export target thanks to bumper rice crops.
Vietnam's higher-than-expected rice output this year should enable it to export as much as 4.5 million tonnes, 13 percent above its earlier target, the government said late last week.
The Philippines has surpassed Indonesia to become Vietnam's largest rice buyer, taking about 46 percent of Vietnamese rice exports since the start of 2008, followed by Cuba, the Agriculture Ministry said. The estimated rice shipment for the first half beat a previous projection in early May that envisaged Vietnam could export 2.03 million tonnes of rice during the first half.

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