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Warning: Risks of mass cultivation of glutinous rice for importing to China

Warning: Risks of mass cultivation of glutinous rice for importing to China

Friday 18, 10 2019
While rice export in 2016 experienced a mournful decrease, glutinous rice export saw surprising growth in both volume and value. However, risks from the Chinese market are lying in wait for Vietnam’s glutinous rice…

While rice export in 2016 experienced a mournful decrease, glutinous rice export saw surprising growth in both volume and value. However, risks from the Chinese market are lying in wait for Vietnam’s glutinous rice…


Mass cultivation of glutinous rice
According to Vietnam Food Association, in rice export structure of 2016, glutinous rice is one of the only rice types (after Japonica) showing significant increase, reaching more than one million tons, 96.6% higher than 2015. This is also the record growth of this rice type. 


The reason behind the vast increase lies in the huge demand from China which accounts for 90% of exported glutinous rice. Previously, in March, 2016 alone, Vietnam’s rice exports to China reached 114,000 tons, 8 times higher than the same period of 2015. The amount of glutinous rice exported to China in 2015 was just 391,800 tons.


Altogether with the increase in volume, Vietnam’s glutinous rice exports also have skyrocketing price with the average of USD 501/ton, increasing USD 36/ton – the highest price compared to other types of rice.


Witnessing the increase of price and demand, many cultivators has shifted to grow glutinous rice. In some key rice-growing areas in Mekong Delta like An Giang, Dong Thap, Can Tho, Tien Giang,… the “all for glutinous rice” movement occurs “noisily”. Particularly, in sticky rice-growing are of Phu Tan (An Giang), the purchase of this rice is more popular than other conventional types of rice.


China applies quota, difficulties?
Many experts have said that despite positive consumption, the mass cultivation of glutinous rice will surely pose risks, especially when China - the biggest market of Vietnam glutinous rice, will apply export quota to this product. That supply surpasses demand is unavoidable.


Currently, Vietnam has no rival in Chinese market with this product, however, many potential risks are in wait when this type of rice is massively grown. Moreover, China has tightened the import of rice from Vietnam, making conditions on food safety, origin…


According to Le Thanh Tung from Cultivation Department, mass cultivation of glutinous rice will affect the quality, difficult to meet the export requirements.
Against this backdrop, representative of VFA has suggested MARD issue warnings about the risks of mass cultivation of glutinous rice in Mekong Delta.

-Compiled by VietnamCredit-

 

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Financial News

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