Rice farmers face losses as paddy prices drop

Farmers in An Giang and Dong Thap provinces of Vietnam are facing significant financial losses due to a sharp drop in rice paddy prices. Nguyen Thanh Loc, a farmer in An Giang, harvested three hectares of paddy and sold it for VND6,200 per kilogram, which is VND1,300 less than the agreed price a week prior. The increased cost of fertilizer, by 10-15% compared to previous harvests, has led to tens of millions of dong in losses for Loc.

Similarly, Le Hoang Nam, a rice farmer in Dong Thap, expected a VND2-3 million profit from his one hectare crop at the previous price but now finds the current price insufficient to cover fertilizer, pesticide, and labor costs. Downpours during the harvest season have also resulted in lower yields for many farmers, exacerbating their financial woes.

The An Giang Department of Agriculture and Environment reported that 60% of the province's rice-growing area, over 300,000 hectares, has already been harvested. In Dong Thap, 75% of the growing area, or 150,000 hectares, has been harvested. Nguyen Vinh Trong, director of rice processing firm Viet Hung, cited weak demand in major export markets like the Philippines, China, and several African countries as the primary reason for the price decline.

Tightened credit limits by banks have also made it more challenging for businesses to secure capital for rice purchases.

According to the Ministry of Agriculture and Environment, Vietnam exported 6.03 million tons of rice, worth nearly US$2.91 billion from January to August, a 5% decrease in volume and a 10% decline in value compared to the previous year. The average export price was $481.5 per ton, a 5.9% drop. Despite expectations of reaching a total export value of $3.94 billion by the end of the year, this would represent a 4% decrease from 2025, mainly due to lower average export prices in the early months of the year.