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Ministry plans massive salt purchase to prop up prices
The Government has been asked to buy 200,000 tonnes of salt to help salt producers cope with the falling price.
The Viet Nam Northern Food Company (Vinafood) will buy the salt from the farmers, ensuring that farmers receive profits of 30-40 per cent,according to the director of the Ministry of Agriculture and Rural Development's Department of Agro-forestry and Fisheries Product Processing and Trade and Salt Industry, Le Xuan.
A survey from Vinafood reported that salt prices have dropped by 33 per cent since last year.
Salt is currently priced at VND600-800 per kg in the northern region of the country and VND400-500 per kg in central Viet Nam.
This year's lengthy hot season, which brought in a bumper crop for farmers, along with an increase in salt imports has caused prices to fall.
The Department of Agriculture and Rural Development in southern Bac Lieu Province reported that salt production in the province set a record for production this year, with an output of more than 200,000 tonnes.
However, only 30 per cent of the province's salt has been sold because farmers are waiting for prices to rise, said Tran Thanh Son from the department's rural development office.
"While waiting for prices to increase, farmers are having a difficult time protecting their products from the rain and humidity," he said.
Salt produced by local farmers is often used to process and store seafood and make fish sauce.
Between 500,000-600,000 tonnes of salt have been imported into Viet Nam, which is equal to 70 per cent of the country's annual salt output.
According to experts, most facilities prefer imported salt because of its cleanliness and whiteness.
Xuan explained that the ministry allows salt to be imported because the country's needs 1.3 million tonnes of salt a year, but Viet Nam only produces between one and 1.1 million tonnes a year.
"Apart from buying salt for farmers, the ministry will also suggest implementing other policies including providing salt makers with industrial technology for production," he said.
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