Vietnam has reduced its rice export target for the year since demand is falling as many buyers await cheap supply from Thailand’s stock clearance sale.
The Vietnam Food Association (VFA) said it has reduced the export target from 6.5 million tons to 5.65 million tons, Tien Phong newspaper reported.
The country exported nearly 6.6 million tons of rice last year, up from more than 6.37 million in 2014.
The VFA envisions poor business this year as exports dropped off after April, dragging down first half shipments by nearly 2 percent year-on-year to less than 2.7 million tons.
Rice prices in several Mekong Delta provinces have gone down in recent weeks, yet there have been few transactions.
According to the VFA, Vietnam’s regular customers in Southeast Asia such as Indonesia and the Philippines are not going to buy more rice from the country any time soon.
Purchases by the biggest buyer, China, which accounted for nearly 35 percent of Vietnam’s exports in the first six months, are also dropping.
Rice customers in the region are all waiting for cheap rice from Thailand, which is going to release 3.7 million tons later this month to reduce its national storage. Around 60 percent will be sold to exporters.
Africa remains a bright spot for Vietnamese exporters, with sales rising nearly 11 percent in the first half.
But traders said revenues would be affected by the weaker euro.