Enterprises in the Mekong River Delta halted purchasing rice from farmers over the last few days for fear that no more rice exports would be allowed. As a consequence, the price of rice on the domestic market has decreased by VND100-150 per kilo, and farmers are worried that continuous decreases will badly affect their income and lives.

A preliminary survey conducted in Thanh Hoa Province, the most severely storm-stricken location, has shown that the province is still self-sufficient in food. In addition, the Vietnam Food Association (VFA) said that rice in stock is around 900,000 tonnes, not as low as the 500,000 tonnes reported by the Ministry of Agriculture and Rural Development.

The optimistic news has prompted rice exporters to continue in their requests for additional exports of at least 600,000 tonnes. VFA said that exporters would focus on exporting scented, sticky, and high-grade rice, which to date has reached an export volume of just 30,000 tonnes (the figure was 100,000 tonnes in 2004).

“For food security, Vietnam should reserve normal rice, while high-grade rice should be exported, especially when world prices are soaring,” said Truong Thanh Phong, Director General of the Southern Food Corporation. All exporters have voiced their sympathy with VFA’s proposal on retaining 300,000 tonnes of rice, but now the Mekong River Delta is beginning to harvest its autumn-winter crop, while other provinces like Bac Lieu, Soc Trang have also commenced.

Exporters say the supply of rice is stable, and with 600,000 tonnes they say food security is within reach. In addition, they say it is necessary to include a considerable volume of rice, estimated at several hundred thousand tonnes, imported to Vietnam via the Vietnam – Cambodia border.

(Source: SGGP)