Farmers guaranteed minimum price for rice

The Vietnam Food Association has promised to ensure that farmers get at least VND5,000 (US$0.25) for a kilogram of paddy.

Truong Thanh Phong, its chairman, told Tuoi Tre that this can be guaranteed, especially since Vietnam has signed a contract to export 600,000 tons of rice in the first two months of this year.

At this price, farmers can make a 40 percent profit, he said.

He projected global rice prices to rise in the next few months since demand is forecast to rise 3 percent while food production will probably fall by 3 percent.

To stabilize the prices and ensure profits for farmers, the VFA has advised its members to buy all the paddy harvested in the Mekong Delta, where harvest of the winter-spring crop has started.

Phong said the 117 members will buy 1 million tons of rice without waiting for the government’s orders before there is any decline in demand since that could drag prices down.

Tags: Vietnam rice, Vietnam Rice prices