VietNamNet Bridge – Twenty-one members of the Vietnam Food Association (VFA) are planning to purchase 400,000 tonnes of rice at the price of no less than 3,800 dong per kilogramme in an effort to stabilise domestic prices.
Nguyen Tho Tri, Deputy Chairman of VFA, said that in order to ensure the profit of 30 percent at minimum for farmers, VFA convened a meeting late last week and decided that 21 member companies will begin collecting 400,000 tonnes of summer-autumn rice from farmers in the immediate time. The total summer-autumn rice output is 2 million tonnes.
Reports from local agriculture departments show that medium-class unprocessed rice is selling at 3,500-3,700 per kilo in the field, while better-class rice, which is used to make 5 percent broken rice, is selling at 4,000-4,100 dong per kilo, a 500 dong per kilo decrease over previous years.
Tri said that the large-scale collection of rice from farmers aims to stabilise prices and ensure profit for farmers. If the rice collected does not help improve the situation, the association will organise another collection stage.
VFA’s report shows that the plan by India to sell two million tonnes of rice proves to be unfeasible. The slow rainy season this year has badly affected the main crop, while the Indian Government has not lifted the ban on white rice exports yet.
Similarly, it is not likely Thailand will be able to sell a big volume of rice on the world’s market, since the Government of Thailand still wants to keep the rice price at a high level. The recent bid for selling rice to the Philippines on July 22 showed that the prices in the world are not as high as expected.
In the domestic market, the low-quality rice price has been decreasing sharply as the Mekong Delta is now in the peak crop, while it is raining continuously, which makes it difficult to dry rice. As the existing drying machines cannot serve all the demand, farmers have to dry rice in small drying rooms. As the rice is dried quickly at a high temperature, the quality of rice is not as good as the rice grains broken in processing and cannot meet requirements for export.
VFA believes that the demand for rice is still high in the world’s market, while big export countries are not under pressure to sell rice. By July 30, the rice stocks had reached 1,321,241 tonnes. Meanwhile, rice keeps flowing in big quantities from Cambodia, mainly low-quality rice.
According to VFA, rice exporters have registered to export 5.394 million tonnes, of which 4.108 million tonnes have been exported. The average rice export price in the first seven months of the year was $409.97 per tonne, down by $164.24 per tonne in comparison with the same period of last year.
Of the exported volume, 2.5 million tonnes went to the Asian market (60.79 percent), 948,347 tonnes to Africa (23.08 percent), 297.053 tonnes to America (7.23 percent) and 118,981 tonnes to Europe (2.9 percent).
VFA’s representative said at a press conference on August 10 that some rice exporters have offered low export prices at $380 per tonne, while VFA is trying to keep the floor price at $400 per tonne.
VietNamNet/NLD
Nguyen Tho Tri, Deputy Chairman of VFA, said that in order to ensure the profit of 30 percent at minimum for farmers, VFA convened a meeting late last week and decided that 21 member companies will begin collecting 400,000 tonnes of summer-autumn rice from farmers in the immediate time. The total summer-autumn rice output is 2 million tonnes.
Reports from local agriculture departments show that medium-class unprocessed rice is selling at 3,500-3,700 per kilo in the field, while better-class rice, which is used to make 5 percent broken rice, is selling at 4,000-4,100 dong per kilo, a 500 dong per kilo decrease over previous years.
Tri said that the large-scale collection of rice from farmers aims to stabilise prices and ensure profit for farmers. If the rice collected does not help improve the situation, the association will organise another collection stage.
VFA’s report shows that the plan by India to sell two million tonnes of rice proves to be unfeasible. The slow rainy season this year has badly affected the main crop, while the Indian Government has not lifted the ban on white rice exports yet.
Similarly, it is not likely Thailand will be able to sell a big volume of rice on the world’s market, since the Government of Thailand still wants to keep the rice price at a high level. The recent bid for selling rice to the Philippines on July 22 showed that the prices in the world are not as high as expected.
In the domestic market, the low-quality rice price has been decreasing sharply as the Mekong Delta is now in the peak crop, while it is raining continuously, which makes it difficult to dry rice. As the existing drying machines cannot serve all the demand, farmers have to dry rice in small drying rooms. As the rice is dried quickly at a high temperature, the quality of rice is not as good as the rice grains broken in processing and cannot meet requirements for export.
VFA believes that the demand for rice is still high in the world’s market, while big export countries are not under pressure to sell rice. By July 30, the rice stocks had reached 1,321,241 tonnes. Meanwhile, rice keeps flowing in big quantities from Cambodia, mainly low-quality rice.
According to VFA, rice exporters have registered to export 5.394 million tonnes, of which 4.108 million tonnes have been exported. The average rice export price in the first seven months of the year was $409.97 per tonne, down by $164.24 per tonne in comparison with the same period of last year.
Of the exported volume, 2.5 million tonnes went to the Asian market (60.79 percent), 948,347 tonnes to Africa (23.08 percent), 297.053 tonnes to America (7.23 percent) and 118,981 tonnes to Europe (2.9 percent).
VFA’s representative said at a press conference on August 10 that some rice exporters have offered low export prices at $380 per tonne, while VFA is trying to keep the floor price at $400 per tonne.
VietNamNet/NLD
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