Many practical benefits for farmers
Mr. Nguyen Cao Khai, Director of Tien Thuan Cooperative, Can Tho - where 132 hectares of rice are being grown under the 1 million hectares of low emissions project, said that the most obvious benefit of participating in the project is "reduced costs, increased profits". Especially stable output when both domestic and foreign consumers prefer organic rice. Sharing more specifically about the benefits, Mr. Khai said that the emission reduction model of the Ministry of Agriculture and Environment is very practical and brings many benefits to help farmers completely change their thinking and farming methods compared to traditional rice. Cultivation according to this new method reduces 2/3 of the amount of seeds used but increases productivity. Specifically, instead of using 180kg of rice seeds/ha like the traditional method, this model only needs 60kg of rice seeds/ha. In addition, the technology of combining sowing and fertilizing simultaneously helps reduce fertilizer loss, saving from 15% -30%. The number of times pesticides are sprayed is also reduced from 7 times to 4 times per crop. As a result, input costs are reduced, productivity increases from 200-300 tons/ha and the selling price is 500 VND/kg higher, helping to increase profits by 2-6 million VND/ha compared to traditional farming methods.
Mr. Nguyen Cao Khai - Director of Tien Thuan Cooperative introduced to Agribank staff the advantages of growing high-quality, low-emission rice.
Furthermore, the new farming method is a closed-loop cycle. When harvesting rice using the traditional method, straw is often burned, causing environmental pollution. However, with the 1 million hectare project, straw is collected to grow mushrooms and sold to the market, while the by-product is used as organic fertilizer to fertilize the rice. As a result, no waste is released into the environment, creating a closed-loop cycle. This method brings many benefits: optimizing profits, reducing pollution, protecting people's health (no need to inhale dust from burning straw), and helping to restore the soil.
The biggest difficulty now is capital to invest in buying straw rolling machines, seeding machines combined with fertilizer application, which Agribank has solved. The entire cooperative has more than 10 members who borrowed more than 6 billion VND from the bank with an interest rate 1% lower than the market. "The policies of the Government and Agribank give us many incentives on capital, helping us feel secure to promote investment and project implementation," Mr. Khai affirmed.
Implement the Project without worrying about supply interruptions
At the milling workshop of Vo Ngoc Tran Food Processing One Member Co., Ltd. in Vinh Binh Commune, Vinh Thanh District, Can Tho City, nearly 100 workers are busy, some transferring freshly harvested rice from boats onto conveyor belts into the drying plant, some putting it into milling tanks, others bagging and sorting finished products. Mr. Vo Thanh Phuoc, the company manager, said that the rice market this year has been quiet, the company still purchases from customers at a higher price than regular rice. Many rice processing companies are having difficulty finding a market, but Vo Ngoc Tran Company alone has a stable output. Currently, the company has increased the amount of high-quality rice purchased in general, and low-emission rice in particular, to 50% of the total warehouse and will continue to increase in the coming time. “Since purchasing low-emission rice for export, customers have been very satisfied, and the company has been able to export to demanding markets. As for mass-produced rice, it cannot enter large markets and can only be sold at low prices. Because of the high selling price, the rice purchase price for farmers is higher, an average of 500-700 VND/kg,” said Mr. Vo Thanh Phuoc.
According to Mr. Vo Thanh Phuoc, implementing the 1 million hectare low-emission rice project, the link between farmers and purchasing enterprises is also stronger, without being broken like before. Farmers and factories sign contracts to purchase products, prices are flexible according to the market, up and down at the actual time of purchase. Thus, farmers can rest assured to produce, when the market price of rice goes up, the factory buys it up, without suffering losses, and when the market price of rice goes down, the product cannot be sold, the factory still buys normally, people do not fear inventory and pressure on prices. And when factories have a link, they can also rest assured to expand their processing plants, without worrying about supply shortages when prices fluctuate.
Agribank - "midwife" promoting the application of science and technology, contributing to the successful implementation of the Project
In this connection, the role of Agribank - the unit assigned by the State Bank to provide preferential capital for businesses and people to implement the Project - is indispensable. As the key bank to pilot this Project, immediately after the Prime Minister approved the Project, in November 2023, Agribank signed a cooperation agreement with the Ministry of Agriculture and Rural Development to act as the focal point for implementation.
On November 4, 2024, the General Director of Agribank signed and issued Document No. 16088 on the Loan Program for Linking Production, Processing and Consumption of High-Quality and Low-Emission Rice Products in the Mekong Delta. Agribank provides loans to serve short, medium and long-term capital needs of all stages (production, purchasing, processing, consumption) in the rice linkage to serve the 1 million hectare rice project with preferential interest rates at least 1% lower per year than the normal interest rate.
Agribank branches in 12 provinces and cities implementing the Project have proactively approached, consulted, and provided information to Project participants on credit policies, processes, procedures, and banking products and services, while also understanding loan needs and perfecting appropriate credit products.
Mr. Luong Tan Phat, Deputy Director in charge of Agribank's Vinh Thanh District Branch, Can Tho 2, said that the Branch has currently disbursed loans to 2 cooperatives participating in the Project with a total outstanding loan of more than 12.5 billion VND. Currently, for the implementation of the 1 million hectare rice project, Agribank has a preferential credit package, 1%/year lower than the normal loan interest rate. Members of the Cooperative borrow capital to buy combine harvesters and machinery for mechanization. Disbursement procedures through Agribank are very simple, all are done in the digital environment, cyberspace, farmers and businesses do not have to go directly to the headquarters to do procedures or receive cash, but the bank transfers directly to their accounts, helping customers not to have to wait, not to waste time and travel costs.
In recent years, Agribank has expanded investment in projects related to environmental protection, improving the quality and safety of agricultural products, developing coastal resources for sustainable development; managing natural disaster risks; supporting low-carbon agriculture; providing clean water and combating drought and saltwater intrusion...
Source: https://www.agribank.com.vn/vn/ve-agribank/tin-tuc-su-kien/dong-hanh-cung-tam-nong/loi-kep-tu-de-an-1-trieu-ha-lua-phat-thai-thap
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