Solutions sought to boost rice export amid market challenges
![Solutions sought to boost rice export amid market challenges](/temp/resize/400x300/upload/news/08-2019/153ed706-5d43f3f6425cc59568bdb57c.jpg)
Ho Chi Minh City (VNA) – Vietnam needs to take new solutions and steps in rice production and export to ensure benefits of businesses and farmers given market-related difficulties forecast for the sector in the whole year, heard a seminar in Ho Chi Minh City on June 24.
Illustrative image (Photo: VNA)
According to Tran Quoc Khanh, Deputy Minister of Industry and Trade, the demand for rice of major markets like China, Indonesia and Bangladesh has dropped recently.
Meanwhile, the US Department of Agriculture forecast that the global rice supply will increase in the time ahead, drawing a gloomy picture of rice export of Vietnam and other countries.
By the end of May 5, 2019, Vietnam exported 2.76 million tonnes of rice valued at 1.18 billion USD, down 6.3 percent in volume and 20.4 percent in value against the same period last year.
Rice price stood at 427.5 USD per tonne, a decrease of 76.8 USD year-on-year, the Deputy Minister said.
Phan Van Chinh, Director of the Export-Import Department under the Ministry of Industry and Trade (MoIT), said in the first five months of 2019, China, Indonesia and Bangladesh imported only 239,000 tonnes of rice in total from Vietnam, as compared with over 1.44 million tonnes shipped to the three countries in the same period last year.
Bui Thi Thanh Tam, Vice President of the Vietnam Food Association, said the domestic rice sector is expected to face a range of challenges not only in 2019 but the years to come, firstly due to the increasing global rice volume which is forecast to exceed 499 million tonnes this year, up 4.2 million tonnes against the previous year.
Another reason is the large amount of rice stockpiles, she said, taking China as an example as the country’s rice stockpiles amount to about 116 million tonnes. China may replace the US to become a big rice exporter in the world.
Le Minh Duc, Director of the Department of Industry and Trade of the Mekong Delta province of Long An, pointed out shortcomings in the implementation of solutions that were rolled out to help remove difficulties facing rice exports.
He suggested the Ministry of Agriculture and Rural Development clearly defines the land area for rice cultivation to ensure national food security and rice exports at the same time, while adjusting rice crops to maintain rice quality and quantity, and reduce production costs.
The MoIT should step up trade promotion activities and maintain revenues of rice export to China, he said, calling on associations to assist enterprises in building brand names for Vietnamese rice.
Other delegates at the event proposed connectivity models between businesses and farmers in rice production and consumption in order to meet market requirements.
Apart from issuing mechanisms in support of rice purchase to stock reserves, relevant ministries and agencies need to better the market information work to help businesses set forth their purchasing plans, Khanh said.
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