Vietnam to stockpile 1 mln tons of rice to curb price slump

PanARMENIAN.Net - Vietnam, the world's second-largest rice exporter, will buy up and stockpile 1 million tons of rice from the winter-spring crop to help boost prices to farmers, state media reported Tuesday, February 28.

Exporters have signed fewer contracts with overseas buyers this year, driving down prices as farmers in the Mekong Delta begin harvesting their crops, according to Tien Phong newspaper.

Major importers have been switching to cheaper rice from India, Pakistan and Myanmar.

Vietnam signed contracts to export 1.5 million tons in the first 45 days of the year, down 23 per cent compared with the same period last year. The country already has a stockpile of nearly 2 million tons.

The government has set an export target of 7.3 million tons of rice this year. But by mid-February exports were only 430,000 tons for 226 million dollars, down 47 per cent in quantity and 44 per cent in revenue compared with the same period last year.

The abundant crop has not helped the market. The Ministry of Agriculture has told members of the Vietnam Food Association to buy rice from farmers from March 15 to April 4, and has promised low-interest credit to help them do this, Thanh Nien newspaper said.

The rice would be held for three months before being released back into the market. The measure should provide farmers with a profit of at least 30 per cent, M&C reported, citing DPA.

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