The Vietnamese government is considering increasing this year’s rice export quota to six million tons from 5.2 million as proposed by rice producers across the country, according to the Deputy Prime Minister Hoang Trung Hai.
Hai said the government has so far had no intention to limit rice export volume, warning rice export increase may cause its prices to fall further.
The proposal was made in order to help settle down a large volume of rice and paddies left unsold in the Mekong Delta region or Vietnam’s biggest rice supplier, which has recently sent its prices to drop by VND500 to VND4,000 per kilo only.
Domestic enterprises had signed contract to export 4.12 million tons of rice as of late May. Of the figure, more than 2.7 million tons, valued at US$1.385 billion, were delivered in the first five months, a record high so far, while another 900,000 tons will be shipped this month.
Analysts said the occurrence of rice stockpile seem to be irrational since the winter spring crop can supply only 2.5 million tons of rice for overseas shipments, very low as compared to 3.6 million tons which local firms registered to export in the first six months.
The difference between rice export volume inked in contracts and registered by local rice enterprises have supposedly accused these firms of cheating at booking a seat for rice export.
A director of a local rice firm, who did not want to be named, has complained about the way the Vietnam Food Association (VFA) regulate rice exports, which has reduced the exporters’ profit.
The VFA currently plays an important role, although the government takes main responsibility for regulating rice export, the director said.
“We suspected that the VFA wants to manipulate the rice export market because Truong Thanh Phong, VFA’s chairman, is general director of the Southern Food Corporation (Vinafood 2)”, he added.
Vietnam, the world’s second-largest rice exporter, earned about US$3 billion from exporting 4.7 million tons of rice last year. (Pioneer)
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