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Rice output to edge up this year
Paddy output is expected to rise by 4.74 percent this year to 37.6 million tons, while the government targets rice exports of 4.5-4.6 million tons.
Announcing these targets at a videoconference on rice-related issues last weekend, the Ministry of Agriculture and Rural Development said the Mekong Delta, the country’s rice basket, would likely harvest 20.28 million tons, up from 18.68 million tons last year.
To achieve the targets, Deputy Prime Minister Hoang Trung Hai said local agencies and farmers should take measures such as combating pests and diseases and ensuring funds for cultivating and buying paddies.
The winter-spring crop has yielded 18 million tons, with the delta region alone accounting for over half.
The summer-autumn crop, which farmers are now harvesting, is expected to yield 10.8 million tons, most of it in the delta.
The delta will accumulate a stockpile of some four million tons, of which 3.5 million tons will be used for export.
Minister of Agriculture and Rural Development Cao Duc Phat asked local rice businesses to sign more export contracts and step up purchases so that farmers, now harvesting a bumper crop, would not be saddled with huge stockpiles and plunging prices.
Earlier, at a conference last Thursday, Prime Minister Nguyen Tan Dung had instructed the Vietnam Northern Food Corporation and the Vietnam Southern Food Corporation to buy 500,000 tons this month.
Nguyen Van Giau, the State Bank of Vietnam governor, said banks would extend credit to businesses to buy rice even if they are yet to sign export contracts.
Now, banks only consider lending to businesses after they sign export contracts.
The central bank has instructed the banks to defer loan repayments by farmers who have not managed to sell their stock yet and to provide them fresh loans for their next crop, Giau said.
Global rice prices have recently declined partly because Thailand, the world’s biggest exporter, has increased its export target to 10 million tons from an initial 9.5 million tons.
Bumper crops in other rice exporting countries like Vietnam and Cambodia have added to the downward pressure.
Vietnam’s 5-percent broken rice slid to $550-600 per ton earlier this month, down from $650-670 in July and $840-850 in June.
Its Thai counterpart fell to $710 per ton from $800-870 in June.
Vietnam shipped 2.65 million tons of rice until July 20 this year.
TNN
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