Rice prices edge up – good news

Paddy rice in the Mekong Delta region has risen by VND200-400 per kilo. This is good news but does not mean farmers will be able to reap real benefits as from the previous crops.

A few weeks ago, many farmers were not sure about what would happen in the rice market. Now they are in a good mood to see rice prices edging up thanks to businesses’ efforts to stockpile rice for export.

The price of summer-autumn rice has gone up by VND200-300 to VND3,800-4,000 per kilogram. Now with a little more profit from selling rice, farmers can pay off their debts for fertilisers and pesticides.

Whenever farmers find it difficult to sell rice, the Government introduces measures to help them. But this is only a temporary solution. In the long-term, farmers need to restructure their rice growing schedule and find outlets for their crop produce.

In response to the Prime Minister’s direction on buying 1 million tonnes of rice from July 15 to September 15, State-owned businesses have tried to get low interest loans from the State Bank for rice purchasing.

Doan Ngoc Pha, vice director of the An Giang provincial Department of Agriculture and Rural Development, says with the price of rice rising slightly farmers are beginning to sell much more rice to businesses. However, they can only gain a real profit from selling rice for at least VND5,000 per kilo.

In fact, the task of buying and stockpiling rice mainly rests with State-owned enterprises and members of the Food Corporation. Private businesses only buy small amounts for domestic use. Therefore, the current price is not reasonable enough to ensure a real profit for both farmers and businesses.

Tran Van Trung, a farmer from Dong Thap province, says that the price of rice is still low compared to the cost of equipment and fertilisers. Farmers insist that the Government come up with effective measures to increase rice sales and introduce a comprehensive policy to ensure a long-term profit for them.

They also urge the Ministry of Agriculture and Rural Development, the Ministry of Industry and Trade, as well as the State Bank of Vietnam to help them overcome difficulties and prepare for the next crop.

Tags: Vietnam rice, Vietnam Rice prices