Vietnam's rice export price drops sharply: Is there a problem in the intermediary buying and selling process?

ANTD.VN - At a meeting on the production and consumption of rice in the Mekong Delta organized by the Ministry of Agriculture and Environment on the afternoon of March 4, Minister Do Duc Duy asked people and businesses to report on businesses that are forcing down prices, dumping... affecting the rice export market so that measures can be taken to rectify and handle the situation.

According to Mr. Do Duc Duy, rice exports have recently encountered difficulties in both quantity and price due to increased supply, especially from India, while demand has not increased significantly.

Minister Duy said the problem is that in the context of common difficulties for all countries, our country's rice export price has dropped the most.

"This is a problem that we need to look at frankly and objectively. Besides the difficulties when countries reduce imports, are there problems coming from our partners?

In industry associations, is there unfair competition among businesses? Is there a phenomenon of selling off when the market drops?

I think there is a problem in the fact that we buy and sell through many intermediaries, so traders buy rice at low prices, reducing profits and affecting the psychology of farmers.

Localities must also look at it frankly. I am very concerned that the rice export price of other countries has also decreased, but why has our country's decreased so deeply? Therefore, we must have the right and accurate solution to this problem" - Mr. Duy raised the issue.

Minister of Agriculture and Environment Do Duc Duy requested clarification of the root cause of Vietnam's sharp decline in rice export prices - photo by Tung Dinh

In the context of a difficult export market and the Mekong Delta entering the main winter-spring harvest with large output, Mr. Duy suggested that units under the Ministry of Agriculture and Environment closely monitor developments in the world rice market, especially policy adjustments in major rice exporting countries such as India and Thailand.

At the same time, grasp the demand for rice imports in large markets with much room such as the US, Japan, Africa, and the Middle East to make timely adjustments to production and export plans in line with market developments.

Regarding the Ministry of Industry and Trade, Mr. Duy proposed to soon establish interdisciplinary inspection teams to inspect and evaluate the implementation of Decree 107/2018 on rice export business, including issues on compulsory reserve requirements and conditions for businesses to meet.

"This inspection is necessary to help us see if there are any problems that businesses are not complying with, so we can correct them, and create a healthy competitive environment among businesses," Mr. Duy said.

Mr. Duy also requested the State Bank to preside over, research, and calculate the arrangement of credit sources for capable enterprises with logistics warehouse systems to borrow to buy rice for temporary storage during periods of market fluctuations.

For localities, the head of the Ministry of Agriculture and Environment said that it is necessary to promote the expansion of production according to business orders, produce to sell what the market needs, not sell what we have, only then will it be sustainable.

Source: https://www.anninhthudo.vn/gia-gao-xuat-khau-viet-nam-giam-sau-co-van-de-trong-khau-trung-giang-mua-ban-post605133.antd