An abrupt increase in rice price over the last two days is due to false rumour and speculation while that is still a rice surplus in the country, said Prime Minister Nguyen Tan Dung at a monthly Government meeting on April 28.
He said that more than 1.1 million tones of rice have been stockpiled by enterprises while national reserve are estimated at a higher level than last year as the country reaped a bumper winter-spring crop.
PM Dung said that the Government has decided to temporarily stop signing rice- export contracts to ensure food security. If the country exports rice at lower prices it will cause losses to farmers as rice prices keep rising on the world market.
The PM urged the Ministry of Agriculture and Rural Development to make it clear to citizens and the Ministry of Industry and Trade to direct the market management groups to strictly punish people who spread false information, speculate and smuggle rice.
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