|
National rice reserve formed to stabilise market
The Ministry of Agriculture and Rural Development (MARD) is planning to develop a national rice reserve of 100,000 tonnes to help stablise distribution and meet supply and demand when market prices fluctuate.
The plan to establish the rice fund will be submitted to the government by MARD, the Ministry of Industry and Trade (MIT) and the Vietnam Food Association.
According to the MIT, the price of rice is not expected to fluctuate from now until the end of the year because Vietnamese farmers are expecting bumper crops this year.
However, like other products in the country, even if the supply and demand for rice are stable, there are times prices increase suddenly due to distribution, the MIT said, adding that is why an adjustment of distribution activities is an urgent priority.
The recent virtual shortage of rice proved that enterprises did not pay proper concerns on the domestic market, and focused mainly on exports, the Industry and Trade Ministry added.
In addition, the current tax policies did not encourage enterprises to take part in the domestic rice market.
The ministry said it has also coordinated with MARD to propose the government provide an exemption of the five percent value added tax rate on rice circulated in the domestic market.
Additional efforts to stablise the rice market include government approval for the Finance Ministry’s proposal to compile a plan on applying absolute tax on rice and urea fetiliser exports from June 2008.
In the first five months of the year, the country exported more than 2.1 million tonnes of rice of 2.4 million tonnes under signed contracts.
The ministries predict that an export target of 4-4.5 million tonnes of rice this year is feasible.
VNA
|
