Some agricultural commodities are supported to stabilize prices

Although some agricultural commodities such as sugarcane and pineapple are not on the list of goods subject to price stabilization in accordance with the Law on Price, the Ministry of Finance and the Government have issued a number of policy mechanisms to support the development of agricultural production.

Farmers can enjoy incentives in policy to produce.

Recently, delegates in some provinces such as Hau Giang and Phu Yen sent a proposal to the Ministry of Finance to propose measures to stabilize essential commodities in production and consumption, stabilize agricultural prices such as rice, pineapple to bring profits for farmers.

Rice in the price stabilization list

The Ministry of Finance said that according to the Law on Price, rice belonged to the list of commodities subject to price stabilization. When the State applies price stabilization measures, including measures to register prices, rice producing and trading enterprises shall send price registration dossiers to the State management agencies.

In the case where the State does not announce measures to stabilize prices, rice producing and trading enterprises shall send price declaration dossiers to State management agencies. Accordingly, the State shall monitor, inspect and stabilize rice prices through the inspection and review of price constituents reported by enterprises when conducting price registration and price declaration.

At the same time, every year, the Ministry of Finance has cooperated with the Ministry of Agriculture and Rural Development to issue a document announcing the price of rice from the beginning of the season. Based on the price of rice, the Government has assigned the Ministry of Agriculture and Rural Development to coordinate with the related ministries and the Vietnam Food Association to submit to the Prime Minister for consideration and application of specific regulatory measures to maintain market prices for rice.

Over the past years, the Prime Minister has issued decisions to buy temporary storage of paddy and rice to ensure the consumption at the time of harvest in the Mekong Delta to stabilize the market. This will help keep rice prices stable, helping to ensure profitability for farmers.

Accordingly, the Vietnam Food Association, based on the price of grain rice, shall organize the allocation to traders to buy rice, temporary storage of sufficient quality export at market prices, ensure the price of paddy and rice not lower than the price of paddy and rice for export. The State budget provides 100% loan interest for businesses that buy rice for temporary storage.

Many tax policies support the development of agricultural production

Explaining the voters' recommendations, the Ministry of Finance said that commodities which were outside the price stabilization list would follow the market mechanism regulated by the State. Accordingly, for the majority of goods and services in the economy (including essential commodities for production and consumption, prices of agricultural products such as rice, sugarcane, pineapple) will be follow the market mechanism.

According to this mechanism, the State will respect the right of self-determination of production and business organizations and individuals, and only regulate prices to stabilize prices and adopt price policies to support the zones with difficult socio-economic conditions.

"Although sugarcane and pineapple are not on the list of goods and services under State price stabilization, they still have received many mechanisms and policies to support agricultural production in general from the Government", the Ministry of Finance explained.

Specifically, agricultural land rent is exempt until the end of 2020 for farmer households, agricultural household members, cooperative members receiving contracts of enterprises or agricultural cooperatives within the limit. Accordingly, all land rent or water surface rents shall be exempt for agricultural projectsfor special investment incentives; 15-year exemption for agricultural projects for investment incentives; Exemption of 11 years for agricultural investment encouragement project.

Regarding the tax on agricultural land use, tax exemption for the whole area of ​​agricultural land is applied for research and trial production; Annual crop land has at least one rice crop per year; area of ​​salt making; agricultural land allocated by the State; and land within limits.

In addition, some agricultural products may not be subject to VAT, if they are new products that are cleaned, dried, splited, sliced and in other common forms of preservation.

In addition, the exemption for personal income tax, post-harvest losses, export credit policies, etc. are also applied in a number of specific cases.

For example, in order to reduce losses in agriculture, the State budget will support 100% interest rate in the first two years, 50% interest rate in the third year for commercial loans for long-term, medium-term and short-term loans in VND to buy machines and equipment to reduce losses in agriculture. The State budget shall support the difference between the commercial interest rates for long-term and medium-term loans in Vietnam dong and the interest rate for development investment credit of the State to implement investment projects on machinery lines, equipment to reduce losses in agriculture (including factories).

With such incentive mechanisms, over the past years, the State has contributed significantly to the development of agricultural production and supported farmers.