Rice prices dropped more than 1,000 VND/kg in half a month, Western farmers face the risk of losses

Rice prices dropped more than 1,000 VND per kg in just half a month, while production costs increased, putting many Western farmers at risk of loss.

Having just harvested 3 hectares of ST rice variety, Mr. Nguyen Thanh Loc, Hon Dat commune, An Giang province, sold it for 6,200 VND per kg, 1,300 VND lower than the price signed with the trader. The price dropped rapidly in just one week, causing him to lose tens of millions of dong, equivalent to the expected profit after three months of farming.

According to Mr. Loc, this crop's production costs increased due to many pests and diseases, requiring a total of 8 spraying times. Meanwhile, agricultural material prices increased by 5-10% compared to before.

In addition, fertilizer also increased, of which DAP was more than 1.4 million VND per bag (50 kg), nitrogen fertilizer was nearly 1 million VND. Mr. Loc's total production costs are about 50 million VND per hectare, an increase of 10-15% compared to previous crops, while rice prices continuously decrease.

"At this price, only those who do well will break even, otherwise they will definitely lose money," Mr. Loc said.

In Dong Thap, Mr. Le Hoang Nam, Long Khanh commune, is waiting to sell a hectare of OM18 rice. Last week, traders made a deposit for 6,800 VND per kg but now only agree to buy 6,300 VND, citing a sharp drop in rice prices. Prices dropped sharply, farmers also had their harvest time extended, affecting productivity.

"If I could sell the rice at the old price, I would still make a profit of 2-3 million VND, but at the current price, the money from selling rice is only enough to cover the cost of fertilizer and medicine, not including care throughout the crop," Mr. Nam said.

According to the An Giang Department of Agriculture and Environment, to date the province has harvested more than 300,00 hectares of rice, reaching 60% of the sowing area, with an average yield estimated at 6.16 tons/ha. Similarly, Dong Thap also harvested more than 150,000 hectares out of a total of more than 200,000 hectares of sowing area.

Mr. Nguyen Vinh Trong, Director of Viet Hung Co., Ltd., said that rice prices dropped sharply due to weak demand in major import markets such as the Philippines, China and some African countries. In addition, banks limit credit room, causing businesses to have difficulty in purchasing capital.

According to the Ministry of Agriculture and Environment, as of August, Vietnam exported 6.03 million tons of rice, worth nearly 2.91 billion USD, down 5% in volume and 10% in value respectively compared to the same period last year. The average export price reached 481.5 USD per ton, down 5.9%.

It is expected that for the whole year, rice export turnover is forecast to be about 3.94 billion USD, down 4% compared to 2025, mainly due to the low average export price in the first months of the year.