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It’s nonsense to export 10 million tons of rice
The media last week quoted some ministry leaders boasting that Vietnam may export 10 million tons of rice this year, or twice the figure last year and a record high over the past 20 years.
Nguyen Tho Tri, vice chairman of the Vietnam Food Association, confirmed that the figure is very illogical. The Daily talked with Tho on Tuesday on the country's current rice export situation. Excerpts:
The local media last week said that the country could ship up to 10 million tons of rice this year, an unachievable number over the past 20 years. Can the number be reached this year?
I'd like to assert that the figure is nonsense and it would never happen. Maybe the media were mistaken for 10 million tons of unhusked rice for export and provided the wrong information.
The Government early this year expected to export 4.5 to five million tons but local exporters signed contracts to sell 5.3 million tons till this Monday in which over 4.1 million tons have been shipped. So the Government's target will certainly be reached. The question is how much more the nation can export in the last months of 2009.
Do you think Vietnam can export six million tons of rice this year as some experts have estimated in recent days?
Given the bumper summer-autumn harvest in the Mekong Delta and a huge rice source from Cambodia, it's possible for the country to export six million tons of rice. However, Cambodian rice is substandard product and not suitable for export.
The association earlier thought Cambodia Would export around a million tons into Vietnam this year but the export increased strongly beyond our expectation. Vietnam's rice import volume from Cambodia was over one million tons after only the first six months as Cambodian enterprises pushed up sales to Vietnam instead of Thailand.
I've read some newspapers which said that the Ministry of industry and Trade suggested to export one or two million more tons but the ministry have turned down the suggestion. The wrong information will cause unfavorable conditions to exporters. International enterprises will reduce prices if they believe Vietnam has to sell a large volume of rice.
Some relevant departments said the rice demand in the world has increased. However, Vietnam's rice prices are still falling. Can you explain the paradox?
The rice demand will continue to rise in the coming time as many African countries are in serious food shortage. The United Nations has called for food aid from nations and Vietnamese rice will be the first choice due to low prices.
However, domestic enterprises have signed large contracts and the countries have yet to carry out aids given the global economy recession. To maintain rice prices, the association has regulated exporters to sign contracts with prices above the reference price.
The association has assigned 21 member enterprises to purchase 400,000 tons of rice, 800,000 tons of unhusked rice at over VND3,800 per kilo to help farmers earn profits. We will purchase more if the export prices remains low.
VietNamNet, SGT
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