Ministry proposes to stabilize rice prices domestically

Farmers in the Mekong Delta harvest rice

While the Ministry of Agriculture and Rural Development and rice exporters are delighted because the world's export price of rice has increased unprecedentedly, the Ministry of Industry and Trade is concerned about the fierce competition between businesses to buy rice which can lead to local imbalance between supply and demand, market disturbance, and unreasonable increase in domestic prices. The Ministry had more grounded concerns.

According to Deputy Minister of Industry and Trade Do Thang Hai, currently, the domestic rice market is tending to go up slightly. Therefore, to ensure market stabilization and the rice supply as well as control the increase in domestic food prices, the Ministry of Industry and Trade asked localities to urge businesses to participate in the local market stabilization program. Moreover, businesses must have a plan for rice sources to make sure enough supply for the market from now until the end of 2023 and the Lunar New Year 2023 with affordable prices.

According to the Ministry of Industry and Trade’s proposal, rice exporting enterprises need to maintain the amount of rice and rice in reserve to stabilize the market according to regulations. Businesses were required to be ready to supply to the market at any time. Under the Ministry’s request, enterprises must balance between exports and local demand avoiding massive purchases, causing market instability and unreasonable increase in domestic rice prices.

Deputy Minister of Agriculture and Rural Development Hoang Trung affirmed that the rising world rice price offered a golden opportunity for Vietnamese businesses and farmers. The Deputy Minister said that the Ministry of Agriculture and Rural Development and the Department of Crop Production have directed localities in the Mekong Delta to grow additional 50,000 hectares of autumn-winter rice crops to increase rice export output and at the same time enhance food security.

Upon reporter’s question how Vietnam will do to grab the opportunity because according to the US forecast, the world's rice demand is very high due to concerns about the influence of El Nino while some countries such as India, Russia, UAE have had export bans to ensure food security, Deputy Minister of Agriculture and Rural Development Hoang Trung said the Ministry of Agriculture and Rural Development has determined to comply with the Prime Minister’s Official Dispatch No. 610 issued on July 3, 2023, on enhancing rice production and export.

In his telegram, the Prime Minister directed the Ministry of Agriculture and Rural Development to organize rice production well to ensure output supply, because this is a prerequisite for export, helping businesses achieve benefit while negotiating with partners. The Ministry of Agriculture and Rural Development will also submit to the Prime Minister for promulgation of a new directive on strengthening rice exports in the new situation.

As the export price of rice increases, the rice purchase price of enterprises and farmers will certainly increase, ensuring more profits for rice growers. In the past few days, the price of IR50404 rice has increased to VND 6,500 per kg while OM 5451 rice surged to VND6,800 per kg and Dai fragrant rice to VND6,950 a kg.

To maintain stability, the Ministry of Agriculture and Rural Development encourages chain linkage between businesses with farmers, cooperatives and cooperative groups as well as the building of material areas to create sustainable raw material areas. steady, steady. For example, when liking with cooperatives, the Loc Troi Group calculated how much output and how much rice in its warehouse, how much rice is for export and then it signed export contracts upon their calculation to ensure stable supply for exports and purchase for farmers. Thanks to good linkage, the company and farmers both enjoy the benefit of a soaring rice price.

The Ministry has assigned the Crop Production Department, the Irrigation Department, and the Plant Protection Department to keep a close eye on drought and salinity to decide whether the country can increase the area of the autumn-winter crop. It is expected to increase by about 50,000ha in the Mekong Delta. According to related agencies’ calculations, if rice can be grown in an additional 50,000ha for the autumn-winter crop, Vietnam can collect another more US$100 million providing food for the world and improving farmers’ income.

According to Mr. Trung, the Ministry of Agriculture and Rural Development firmly grasps the market situation as well as rice production in Vietnam. Rice is cultivated in an area of 7.1 million hectares with an output of 43-43.5 million tons ensuring the balance between domestic consumption and export. Under responsible agencies’ figures, Vietnamese people consume about 30 million tons of rice; thus, approximately 7-7.5 million tons of rice is for export./.

By Van Phuc – Translated By Anh Quan(SGGP)