Vietnam imposes floor price for low grade rice
HANOI (REUTERS) - Vietnam will later this week impose a floor price of US$370 (S$452) a tonne for low-quality 35 per cent broken rice for export, a trader and officials said on Wednesday, as it looks to halt price declines with demand tapering off towards year-end.
The new price, based on a free-on-board Saigon Port basis, will take effect from Thursday, a Vietnam Food Association official said by telephone from Ho Chi Minh City.
"We are not targeting any buyer, but the minimum price for the 35 per cent broken rice is there so other (higher) grades can follow suit," the official said.
Buyers and sellers can decide export prices for other varieties, the food association said in a statement, but the government hopes the floor price for the 35 per cent broken grain will influence other grades.