At this time, businesses can increase purchases because winter-spring rice has better quality than the rest of the year and the price is good. Businesses can store the amount of rice they buy or supply it to the Southern Food Company. This also helps to increase rice prices.
Businesses increase purchases to boost rice prices
Mr. Tran Tan Duc - General Director of the Southern Food Company (Vinafood II) said that the increase or decrease in rice prices depends on the output of the enterprise. In previous years, companies had overlapping contracts, this year there are almost none.
Farmers in the Mekong Delta harvest the 2025 winter-spring rice crop. Photo: HX
In addition, India's resumption of exports has had an immediate impact on the market, as the country's exports amount to 20 million tons per year, accounting for nearly 50% of the world's demand.
However, the above market situation is very normal, according to the law of supply and demand. To increase rice prices, businesses can increase purchases at this time. Because winter-spring rice has better quality than the remaining crops of the year and the price is good.
The amount of rice purchased, enterprises can store or supply to Vinafood II (Vinafood II has just won a bid to sell 100,000 tons of rice to Bangladesh). In addition, there are 80,000 - 100,000 tons of rice that the National Reserve Department deploys annually.
Winter-Spring rice in the Mekong Delta in 2025 has better rice quality than the remaining crops of the year and the price is good. Photo: HX
"Thus, the State will be able to buy rice at reasonable prices, with good quality, and support businesses to not store much in warehouses but transfer it to State warehouses," Mr. Duc analyzed.
Mr. Duc emphasized that if the above issue is resolved, rice prices will increase. Since the beginning of the year, Vinafood II has purchased 300,000 tons of rice, equivalent to about 600,000 tons of paddy, thereby also helping to increase rice prices for farmers.
There is a large warehouse available for people to store and wait for rice prices to increase to sell.
Talking to Dan Viet reporters, large enterprises in the rice industry in the Mekong Delta said that the purchase and sale of winter-spring rice crops is still taking place continuously, without any congestion. Some enterprises even said that "they don't even dare to take a day off on Sundays, they still have to work so that farmers can consume their rice at the right time."
Mr. Truong Manh Linh - representative of Tan Long Group Joint Stock Company (Tan Long Group) said: "From the beginning of the winter-spring rice crop, the company has continuously purchased rice from farmers. From the beginning of January until now, the total rice output that the company has brought to the system for drying, storing and producing is about 200,000 tons of rice".
Currently, the company is continuing to purchase from cooperatives as well as farmers to ensure production and business sources in the coming time.
The company's total current capacity is about 300,000 tons. Of which, the total capacity at the Hanh Phuc rice factory (Tri Ton district, An Giang province) can reach 120,000 tons of rice. In particular, farmers and cooperatives are allowed to bring rice to the factory for processing (for a fee) and store it here for a long time, waiting for the price to increase.
Mr. Linh said that the model being piloted at Hanh Phuc rice factory is the first in the West. The company is very transparent in the story of goods brought in and exported by farmers and cooperatives, according to requirements.
According to the leader of Tan Long Group, in terms of consumption market, the Philippines is still the leading market in importing rice from Vietnam. This is a strength that Vietnam needs to continue to exploit, because the Philippines imports a lot of fragrant rice. Meanwhile, India does not have as much fragrant rice as Vietnam and Thailand (Thailand's level of competitiveness in terms of price and output is not equal to Vietnam in recent years).
Therefore, in the coming time, Tan Long Group suggests that there should be more policies to promote this market. This is also a way to help improve rice prices in the Mekong Delta in the coming time.
Capital support for businesses storing rice to stimulate rice prices
Mr. Nguyen Ngoc Nam - Chairman of the Vietnam Food Association (VFA) said that in 2023, Vietnam will export over 8 million tons of rice, and in 2024, it will reach about 9 tons. This confirms that Vietnamese enterprises have proactively sought markets, and the amount of rice produced is not worried about consumption.
Mr. Nguyen Ngoc Nam - Chairman of the Vietnam Food Association (VFA) said that Vietnamese enterprises have proactively sought markets, so the amount of rice produced is not a concern for consumption. Photo: HX
However, to help reduce difficulties in rice prices in the market, Mr. Nam proposed that the State Bank expand capital sources and extend loan terms for businesses to purchase and reserve, while removing obstacles in VAT refunds.
Mr. Nguyen Ngoc He - Vice Chairman of Can Tho City People's Committee has also just proposed that the State Bank consider expanding the limit and loan term for rice enterprises. Because according to Mr. He, purchasing rice requires a large amount of money during the main crop season, especially the winter-spring crop. If there is not enough credit capital, enterprises will find it difficult to maintain the chain of links.
Based on experts’ opinions and many years of experience, many opinions believe that the current difficult situation for rice exports may return to normal from mid to late Q2. Therefore, the Ministry of Agriculture and Environment has asked businesses to maintain stable purchasing as well as have solutions for stockpiling, waiting for the time when the market adjusts and stabilizes before expanding exports.
According to the Ministry of Agriculture and Environment, rice prices are currently returning to the level of 2023, the time before the price spike in 2024. Regarding export rice prices, in the period 2022 - 2023, the average price was 400 USD/ton, while currently it is 530 - 540 USD/ton. Therefore, this price level is not too worrying.
To facilitate rice production in the coming time, Mr. Ngo Cong Thuc - Vice Chairman of An Giang Provincial People's Committee proposed that the Ministry of Agriculture and Environment as well as relevant ministries and branches continue to support An Giang in calling for corporations and enterprises to invest in production linkages.
At the same time, there should be more preferential policies to encourage businesses to boldly invest, especially tax and credit policies in investing in building warehouses, helping to stabilize exports.
According to Mr. Thuc, currently, the locality has about 30 enterprises participating in rice production, accounting for about 16% of the rice production area of the whole province. In the Winter-Spring crop, people went down to about 228,000 hectares, up to now, nearly 15,000 hectares have been harvested, with an average yield of about 7.17 tons/ha, the total output is estimated at about 1.6 million tons.
Source: https://danviet.vn/dang-la-thoi-diem-vang-de-doanh-nghiep-tang-toc-mua-lua-cho-nong-dan-20250309111330182.htm
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