Rice Farmers Face Losses Amidst Falling Paddy Prices

Rice farmers in Vietnam are facing significant losses due to falling paddy prices, despite a generally good harvest. The situation is exacerbated by rising fertilizer costs, pushing many into financial hardship. Nguyen Thanh Loc, a farmer from An Giang Province, recently harvested three hectares of paddy, only to sell it for VND6,200 (US$0.24) per kilogram, VND1,300 lower than the agreed price a week prior. With fertilizer costs up 10-15% from previous harvests, this price drop has resulted in losses of tens of millions of dong. "At this price, most [farmers] are certain to suffer losses," Loc stated. Le Hoang Nam, cultivating one hectare in Dong Thap Province, saw a trader's offer drop from VND6,800 to VND6,300 per kilogram within a week. "The previous price would have netted a VND2-3 million profit, but the current price is barely enough to cover fertilizer and pesticide, not to mention labor," Nam explained, adding that lower yields this harvest also contributed to farmers' woes. Over 300,000 hectares, or 60% of An Giang's rice cultivation area, have been harvested. Dong Thap has harvested 150,000 hectares, or 75%. Nguyen Vinh Trong, director of rice processor Viet Hung, attributed the sharp price decline to weak demand in key export markets like the Philippines, China, and several African countries. He also noted that tighter bank credit limits are making it harder for businesses to secure capital for rice purchases. Data from the Ministry of Agriculture and Rural Development shows Vietnam's rice exports from January to August reached 6.03 million tons, valued at nearly US$2.91 billion, down 5% in volume and 10% in value year-on-year. The average export price was $481.5 per ton, a 5.9% decrease. Exports are projected to reach $3.94 billion by year-end, a 4% drop from 2025, largely due to lower average export prices in the initial months of the year. As a major rice exporter, Vietnam's price fluctuations impact not only domestic farmers but also global food supply. Government policies are thus crucial for maintaining export competitiveness while ensuring domestic food security.