On the morning of March 4, Minister of Agriculture and Environment Do Duc Duy chaired a conference on stabilizing the rice market.
Also attending the conference were Deputy Minister of Agriculture and Environment Tran Thanh Nam; Deputy Minister of Industry and Trade Nguyen Sinh Nhat Tan; Deputy Governor of the State Bank Dao Minh Tu; representatives of the Ministry of Foreign Affairs, the Ministry of Finance; leaders of the Mekong Delta provinces... The conference was held in person and online.
Speaking at the conference, Minister Do Duc Duy said that the Ministry of Agriculture and Environment organized this conference to assess the domestic and international rice market situation and find appropriate solutions to stabilize and sustainably develop the rice industry in the coming time. The world rice market has witnessed many fluctuations in recent times, especially after India decided to lift the ban on rice exports from September 2024.
According to the assessment of the authorities and experts in the industry, the supply-demand situation in the international market is showing signs of imbalance. Rice supply is increasing sharply while demand is increasing but not keeping up with the increase in supply, especially when countries like India and Thailand are boosting exports.
This situation has directly affected Vietnam's rice exports, causing us many difficulties, especially when rice prices have dropped sharply compared to 2024. This not only affects the international market but also directly affects the domestic market, especially when we are in the main winter-spring crop season of the Mekong Delta, with a very large rice output.
In that situation, and under the direction of the Prime Minister, the Ministry of Agriculture and Rural Development organized this conference with relevant ministries, branches, localities, industry associations and key export enterprises to implement four main goals, including:
It is necessary to clearly identify the advantages and difficulties in producing, harvesting, processing and exporting rice, as well as factors affecting the international and domestic markets.
It is necessary to analyze the causes of the imbalance between supply and demand, including causes from the international market and causes from the domestic situation. Minister Do Duc Duy said that understanding the causes will help us find appropriate solutions.
One of the goals of the conference is to propose solutions to stabilize the market. Minister Do Duc Duy said that our goal is not only to stabilize the market in the short term but also to develop the rice industry sustainably in the long term. Solutions will include measures to stabilize prices, support exports, improve warehouse capacity, and enhance trade promotion activities.
The conference also hopes to listen to opinions and proposals from ministries, branches, industry associations, export enterprises and localities to develop effective, practical and synchronous solutions. After this conference, the Ministry of Agriculture and Environment will synthesize opinions and submit them to the Prime Minister to issue an urgent dispatch to direct this field.
Minister Do Duc Duy also noted that when prices drop sharply, it may lead to traders forcing farmers or businesses lacking financial capacity to sell rice at a loss to avoid losses. This not only reduces the value of rice but also disrupts the market. In addition, there are opinions that in a situation where supply exceeds demand, some major rice importing countries of Vietnam may take advantage of this time to force down prices. Therefore, the Minister said that if we do not stay calm and make appropriate decisions, we may fall into a situation where prices are forced down by export partners and this will negatively impact both the international and domestic markets.
In addition, one of the solutions we have implemented in the past is that exporting enterprises can use financial resources to actively buy rice for temporary storage and export when the market recovers. However, Minister Do Duc Duy said that it is also necessary to consider the issue of warehouse infrastructure, transportation capacity and the ability to supplement credit capital for enterprises. Therefore, the conference hopes to have the participation of the State Bank to discuss the possibility of expanding credit quotas for exporting enterprises for a period of 3-6 months...
The Department of Processing, Quality and Market will present an overview report on the rice market situation, giving some recommendations and solutions. After that, the conference hopes to receive comments from localities, businesses and industry associations. Localities will clearly state the current situation of production, harvesting, purchasing, processing and exporting in their areas, and whether there are any unusual problems or difficulties.
The content of the Conference will be updated in the next newsletters…
Source: https://baotainguyenmoitruong.vn/bo-truong-do-duc-duy-chu-tri-hoi-nghi-ve-on-dinh-thi-truong-lua-gao-387265.html
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