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Prices for Vietnamese 5% broken white %Rice have fallen to their lowest level in 16 months amid growing regional competition.

Vietnamese white rice is currently selling for $499 U.S. a metric ton, down about $30 U.S. per ton on the month and $100 a ton lower than a year ago.

However, despite the steep decline, Vietnamese rice prices remain the highest in Asia.

That said, analysts are warning that Vietnam is fast becoming the least competitive market in the region as growers emerge in competing nations such as Pakistan and Thailand.

The 5% broken white rice in Pakistan is currently selling for $452 U.S. a metric ton, undercutting the price in Vietnam, for example.

Analysts expect a continued price decline for white rice in Asia, especially as India returns to international trade following the lifting of its export ban on rice products.

Market participants say that Vietnam cannot compete with India's cheaper rice varieties and the number of buyers is therefore expected to continue declining.

In response, many producers in Vietnam have switched to fragrant rice from white rice.


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