Vietnam rice prices have been falling in the last two days as importers from the Philippines canceled orders due to fear of losses after the country imposed rice price ceilings.
Vietnam 5% broken rice price has fallen 2.3% from Tuesday to $628 per ton on Thursday, the biggest plunges since India banned the export of non-basmati white rice.
Exporters say that since the Philippines on Septemper 1 imposed a price ceilings on rice to protect consumers amid a surge in prices locally, buyers have been calling off their orders
Nguyen Viet Anh, CEO of Orico, one of the 10 biggest rice exporters in Vietnam, said that several buyers from the Philippines have asked to cancel shipments and delay the delivery of some orders.
Another exporter in An Giang Province said that 40% of its customers in the Philippines have asked to cancel orders. They said that with the new price cap, the more they sell the more money they will lose.
Rice is capped at around $738-810 per ton in the Philippines, higher than the imported price of up to $900.
"Buyers asked to cancel any order that is priced $660 or higher and to delay the delivery of lower-priced rice," said the leader of the An Giang exporting firm.
Rice exporters, however, are confident that demand from China, Indonesia, Malaysia and Africa remains high and therefore export prices are set to pick up in coming days.
Vietnam's average rice export price in the last eight months was at $542 per ton, up 11.5% year-on-year.