Illustration photo. Photo by Danviet
Prime Minister Nguyen Xuan Phuc agreed to the resumption of rice exports. Under the PM’s approval, around 400,000 tonnes of rice will be exported this month.
The Ministry of Industry and Trade has also been assigned to submit the rice export plan in May to the prime minister before April 25 and worked out a scenario on rice export management in case Covid-19 continues until the end of this year.
Nguyen Van Don, director of Viet Hung Ltd. Co. in the Mekong Delta province of Tien Giang, said that rice prices have increased by VND2,000 per kilo against middle-March due to the higher export prices.
During the time when Vietnam and India suspended rice exports, Thailand dominated the market, resulting in higher export prices. India has also recently resumed its rice export after a three-week halt.
Don added that Vietnam missed out of big profits from rice exports because of the suspension.
According to the Ministry of Industry and Trade’s report, by late March, Vietnam’s rice inventory was quite large. Meanwhile, the country’s total paddy rice this year is forecasted to reach roughly 43.5 million tonnes, equal to the figure of last year, despite drought and saline intrusion.
This year, the national paddy reserves would be 29.96 tonnes, so, the remainder of 13.5 million tonnes of paddy, equivalent to 6.5-6.7 million tonnes of rice, could be used for export.
Associate Prof. Dr Duong Van Chin, former deputy head of Mekong Delta Rice Institute, said that Vietnam needs to export rice as usual in order to reduce the high inventory.
It was necessary to intensify rice exports to take advantage of high prices in the global market, which also helps to encourage farmers. This was a key factor to ensure national food security, Chin added.
