12:33:56 PM | 7/8/2008
When rice prices are sharply falling, many analysts said Vietnam has lost the golden chance in exporting rice as it stopped the export when the prices hit roof, local media reported.
In late April and May 2008 when export rice prices hit record at US$1,200 a ton, the Vietnamese government banned local companies to sign new contract for fear that the massive rice export would have threatened the national food security.
At that time, Thais companies won a number of contracts to export their rice for more than US$1,000 a ton.
Export prices of Vietnamese rice are now dropping to around US$600 a ton, down from US$725 a ton a week earlier, and from US$750 a ton from the previous week.
At local market, paddy prices decreased to only VND4,200 a kilo, but a few companies want to collect it for export because they thought the prices will continue falling.
Rich supply of paddy thanks to bumper summer-autumn crop in Mekong Delta, and decreased prices at the world market, are the two main reasons for the drops of paddy in Vietnam, the analysts said.
Phan Nhut Ai, director of the Agriculture and Rural Development Service of Vinh Long province said the low paddy prices are hitting local farmers, who have recently rushed to chop down sugarcane, cajuput and fruit orchards to expand paddy cultivation area.
Ai said farmers only accept VND4,600 a kilo at least because of increased fertilizer, fuel and pesticide prices.
But local rice traders said the government’s decision to impose rice export tax also attributed to the rice price shrink.
The Vietnam Food Association said it will suggest the government increase threshold of rice export price to be taxed or remove the tax to help ease difficulties faced by both local farmers and exporters. (Saigon Liberation, Vietnam Agriculture)
Vietnamese
