Government boosts rice reserves

Prime Minister Nguyen Tan Dung has ordered the Ministry of Finance and Ministry of Agriculture and Rural Development to buy up an additional 100,000 tonnes of rice for the national reserve.

The move, which will cost about 880 billion VND, follows similar measures by other countries in the region. Both Thailand and India recently increase their rice reserves to ensure food security.

Rising prices and export orders necessitated the move. A kilogramme of rice in the Mekong River Delta currently sells for 3,500-4,000 VND, 200-300 VND higher than before the Tet holiday, according to Vietnam Food Association general secretary Huynh Minh Hue.

Vietnam predicts that rice exports in 2009 will total 4.5-5 million tonnes. Buyers in the Philippines, Singapore and some African countries have recently signed contracts to buy rice from Vietnamese exporters.

The Philippines is the leading importer of Vietnam’s rice, with plans to import 1.5 million tonnes this year. It, along with other traditional markets like Malaysia and Cuba, consume 40 percent of the Vietnamese rice exports.

VietNamNet, VNA

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