Consider temporarily storing 1 million tons of summer-autumn rice

On the afternoon of May 29, at a meeting with relevant ministries and sectors, Deputy Prime Minister Hoang Trung Hai directed the consideration of a plan to temporarily store 1 million tons of rice from the 2013 summer-autumn crop, creating conditions for farmers and traders to proactively harvest and consume rice, contributing to curbing the current complicated price decline.

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The Government's continued consideration of the policy of temporary storage is clearly defined as aiming to support agriculture and guide farmers' product prices, not as a policy of guaranteed consumption, leading to some unreasonable and conflicting opinions about the results of temporary storage of rice in recent times.

With the expected purchasing mechanism as in the last winter-spring crop, the Deputy Prime Minister assigned the Vietnam Food Association to preside over and coordinate with the People's Committees of the Mekong Delta provinces to allocate the quota for temporary storage of summer-autumn rice, taking into account the commercial rice output of each locality. Relevant ministries and branches shall organize guidance, inspection, and supervision of temporary storage, ensuring compliance with regulations and achieving efficiency.

According to a report by the Ministry of Agriculture and Rural Development, as of May 8, the Mekong Delta has sown 1.135 million hectares of summer-autumn crop, with an expected output of over 9 million tons of rice in the region this crop. In the Mekong Delta provinces, the purchase price of rice is currently on a downward trend, about 100-150 VND/kg compared to last week. The price of dry rice at the field is currently fluctuating between 4,850-4,950 VND/kg (regular rice) and 5,100-5,200 VND/kg (long-grain rice).

Previously, the Ministry of Finance had announced the average production cost of summer-autumn rice in the region at 4,142 VND/kg, which converted to the target price of rice at 5,383 VND/kg. Therefore, the above market price of rice is currently lower than the target price and this is the basis for the Government to consider and officially issue a decision on temporary storage in the near future.

Meanwhile, according to the general report, the rice export situation is facing many difficulties and is forecast to be extremely complicated and unpredictable. Compared to the same period last year, the export price of rice in the first quarter has decreased by more than 40 USD/ton and continues to decrease. Traders participating in temporary storage are facing difficulties due to slow consumption and are at risk of losses.

Therefore, in the meeting, opinions agreed that keeping rice prices stable, while export prices decreased and ensuring farmers' effective production was a success from the temporary storage policy. Affirming that the temporary storage policy for the Winter-Spring crop was announced in accordance with the general situation, creating conditions for farmers and traders to proactively orient themselves in harvesting and consuming commercial rice, contributing to curbing the price decline.

During the temporary storage purchase period, the price of paddy and rice in the market increased compared to before the temporary storage purchase period, even higher than the target price, which is a price that is beneficial to rice growers, ensuring farmers' profits and stability for a long time, creating conditions to maintain the export price level, limiting price pressure and dumping competition in the context of fierce competition in the rice export market.

According to (Chinhphu.vn) - LT