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Champassak seeks funding to set up rice stockpile
Champassak province has asked the government for 30.12 billion kip to set up a rice stockpile that would enable authorities to keep rice prices stable at times when they would normally peak.
The provincial Rice Mills Association will use the funds to buy paddy rice from farmers for storing in mills and for later sale when rice prices peak, as they are expected to do from 2011-2013, Champassak provincial Domestic Trade Section Deputy Head Suntisouk Orkeotexo told Vientiane Times yesterday.
After the government recently approved a new funding package of 50 billion kip to expand the rice stockpile project to more provinces in Laos, authorities in Champassak sent their funding proposal to the government.
The stockpile project aims to secure rice prices for farmers while ensuring food security in the country, as well as helping consumers cope with high rice prices.
Drought, pests and flooding issues in Champassak last wet season destroyed more than 19,000 hectares of rice, with only 150,000 tonnes harvested, a dramatic drop from the year before when farmers cultivated about 400,000 tonnes of the grain, according to provincial authorities.
Champassak is a major producer of rice in the south and often sells the grain to nearby provinces such as Xekong and Attapeu.
Many people in rural areas may face rice shortages this year if the price increases and provincial authorities don't intervene to keep prices stable.
As such, the rice stockpile project is important to ensure food security and keep rice prices stable in the future. The Champassak provincial industry and commerce sector is warning farmers not to sell rice to traders or producers in other countries, as well as encouraging all domestic rice traders to obtain the correct documents certified by the relevant authorities, said Mr Suntisouk.
Khammuan province has already received 20 billion kip from the government to set up a rice stockpile, but the provincial rice mills group has been unable to buy paddy rice yet because prices are still high, said Head of the Khammuan provincial Domestic Trade Section, Mr Pinkeo Inthavongsa.
The government has stipulated that rice purchased for stockpiling must cost no more than 2,500 kip a kg, but at present the grain costs around 3,000 kip per kg, he said.
Once this year's dry season rice is harvested farmers will release any stores from the last wet season harvest and prices should drop to about 2,500 kip, said Mr Pinkeo.
When prices drop into the allocated range the group will buy paddy rice for stockpiling.
The project will also encourage farmers to boost production so they are better protected from fluctuations in the price of rice at markets.
Last year, rice prices in all provinces of the country rose to high levels, impacting a lot of consumers. The government decided to intervene and released stockpiled rice for 5,500 kip a kg in a bid to bring prices down.
The move helped many people, especially low income earners, to buy sufficient rice to eat in the months before the next harvest.
vientiane times
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