An unsatisfied demand for some agriculture foodstuffs was the main reason for increased prices, said Minister of Agriculture and Rural Development Cao Duc Phat.
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| Clients shop for pork at Co.op Mart Supermarket in Nguyen Dinh Chieu Street. The local price of pork has increased over the past six months. — VNA/VNS Photo Kim Phuong |
He told a meeting on July 12 to discuss methods of stabil-ising food prices that domestic demand had reached a peak while supply was still low. Imports of many types of agricultural food had also fallen.
Prices of some agriculture foodstuff had increased by 40-60 percent while inflation was only 13 percent. Pork prices jumped the highest, surging by 70 percent in April over the same period last year.
Explaining why pork prices had increased, deputy head of the Livestock Breeding Department Nguyen Xuan Duong said input prices, such as feed and vet bills, had climbed.
Meanwhile, he said, bank interest rates were high so that no farm dared to borrow to feed their pigs, leading to the short supply.
"The price of pork in Vietnam is now equal to China and higher than many other countries such as Thailand and the United States," Duong said. "It is difficulty to reduce the price. We can only control and limit the increase."
Ministry officials at the meeting rejected the claim the Chinese traders were buying vegetables and meat in big volumes, causing a shortage on the domestic market.
"In the last six months, no buffalo or cows have been exported for foodstuff purposes," Department of Animal Health head Nguyen Van Dong said.
"The volume of pigs unofficially exported to China since the beginning of the year was more than 19,200. This export stopped from April because the price of pork in China was the same as in Vietnam."
As for vegetables, participants at the meeting agreed that bad weather conditions had a strong impact on prices.
Head of the Cultivation Department Pham Dong Quang said that storms last month reduced the vegetable yield.
The volume of fruit and vegetables imported from China had year-on-year dropped by 10 percent.
To solve the problem and stabilise prices, the ministry asked authorities to guide companies and implement price stabilisation programmes.
"Appropriate authorities have to co-operate with the Ministry of Industry and Trade as well as local authorities to boost activities in preventing smuggling," Phat said.
Phat said that with all efforts, the country could fully meet the demand for vegetables within 10-15 days.
"In special cases, the Cultivation Department may give farmers seeds," he said. "Livestock feeding must be strengthened to meet the demand."
Phat also ordered authorities to find out what difficulties farmers faced in getting loans.
