Sticky rice exporters need urgent measures to resolve difficulties

Long An Province has recently asked the Ministry of Industry and Trade to propose the Prime Minister to allow the unlimited export of glutinous rice to reduce the high inventory for enterprises and create conditions for farmers to continue to sell glutinous rice at profitable prices as glutinous rice production is mainly for export.

The inventory of sticky rice in Long An Province is fairly high. (Photo: SGGP)

On April 18, Mr. Nguyen Quang Hoa, Director of Duong Vu Company in Long An Province, said that his company has finished packing around 500 containers or 12,500 tons of sticky rice since March 20, but up to now, they were still unable to export. Therefore, his company has had to spend on preservation and storage costs, loan interest, and inventory while the factory halted operations. Especially, it is afraid that its customers will claim compensation and cancel contracts due to late delivery. The company is facing several difficulties and on the verge of suffering huge losses. 

According to Mr. Hoa, his company is one of the leading sticky rice exporters in the Mekong Delta with a production of around 220,000 tons per year. The company associates and underwrites nearly 500,000 hectares of sticky rice for farmers in Long An and An Giang provinces with a buying price VND1,500-VND2,000 per kilogram higher than that of paddy, ensuring good profits for farmers. However, recently, the company, as well as other sticky rice exporters, have encountered difficulties because of export suspension. 

Amid the situation, the company proposed the Prime Minister and relevant ministries to allow the export of sticky rice again to help it to clear the large amount of sticky rice stagnant at ports to wait for permission to export, reducing losses for the company.

Sticky rice exporters need urgent measures to resolve difficultiesLong An Province has recently asked the Ministry of Industry and Trade to propose the Prime Minister to allow the unlimited export of glutinous rice to reduce the high inventory for en ảnh 1

According to Mr. Tran Van Can, Chairman of the People’s Committee of Long An Province, the sticky rice inventory of enterprises in the province was above 56,000 tons while the domestic demand for sticky rice is poor.

Ms. Vo Thi Anh Xuan, Secretary of An Giang Provincial Party Committee, said that farmers in the province grow more than 115,000 hectares of sticky rice annually, or 747,500 tons of sticky paddy, and around 10,000 hectares of Japonica rice variety with a production of 75,000 tons per year. The production of these two products is for export only and in the past years, farmers and enterprises have established an efficient value chain from production to consumption. So the province proposed the PM to prioritize the export of glutinous rice and Japonica rice.

Lately, Deputy Minister Le Quoc Doanh of the Ministry of Agriculture and Rural Development sent an official dispatch to the Ministry of Industry and Trade on giving permission for sticky rice exports. According to the MARD, in the winter-spring rice crop this year, Long An Province grew 65,000 hectares of sticky rice with a production of 430,000 tons or 258,000 tons of sticky rice; An Giang Province grew 44,000 hectares of sticky rice with a production of 325,000 tons or 195,000 tons of sticky rice.

The MARD agreed to resume the export of sticky rice of the winter-spring rice crop, at the same time, asked the MoIT to provide information on the export situation and market demand as a basis to adjust the area and the production of sticky rice in next crops.

Earlier, in the official dispatch sent to the MoIT, Deputy Minister Huynh Quang Hai of the Ministry of Finance also consented to the resumption of the export of sticky rice, as well as organic rice and fragrant rice.