Vietnam, the world's second largest rice-exporting nation has announced that it is looking to increase exports of the grain by 1.0 million MT after determining the country had sufficient supplies for its domestic market.

The move comes after officials had limited 2008 rice exports to 3.5 million MT in a bid to keep domestic prices down in a period of soaring inflation and to ensure its stocks for local consumption amid the global food crisis.

In May, inflation in Vietnam had surged 25% from a year before, with prices for rice and other grains shooting up 68%, according to Vietnam's bureau of statistics.
 
World grain prices have risen sharply this year, a trend blamed on higher energy and fertilizer costs, greater global demand, droughts, the loss of farmland to bio fuel plantations, industry and cities, and price speculation.