VFA proposes stockpiling more rice
(VOV) -The Vietnam Food Association (VFA)has proposed the government allow businesses to purchase an additional 300,000 tonnes of rice from farmers to stabilise its prices in the domestic market.
The purchase will last a month, starting on September 15.
The move came after Thailand, one of the world’s leading rice exporters, surprisingly lowered the prices of its 100B rice from US$430 to US$380 per tonne, which had an immediate and substantial impact on the global rice market, including Vietnam .
In June- July local businesses bought 1 million tonnes of rice from farmers for national reserves to support farmers and stabilize the price of rice for export.
However, VFA Chairman Truong Thanh Phong said only 200,000-300,000 tonnes of the stockpiled rice have been exported, meaning businesses now suffer a loss of US$30 per tonne (equal to US$24 million in total) due to the Thai sales decision.
In the long-term, Phong said businesses are encouraged to actively explore new markets.
VFA also asked the government to negotiate with Angolan and Kenyan governments to accelerate the delivery time as the two African countries have imported a large amount of rice from Vietnam.