Mr. Nguyen Nhu Cuong - Director of the Department of Crop Production (Ministry of Agriculture and Rural Development) had an interview with reporters of the Industry and Trade Newspaper about this issue.
As 2023 comes to an end, the rice industry has recorded records in both output and selling prices. Farmers are excited because of good harvests and good prices. Can you share about this?
Rice production in 2023 is considered a year of both good harvest and good price. The estimated cultivated area is 7.1 million hectares, with an output of 4.3 million tons.
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| Rice exports in 2023 set many records |
In particular, after India banned rice exports, along with close instructions from the Government, ministries, departments and sectors in both seizing market opportunities and ensuring food security, the Ministry of Agriculture and Rural Development also directed to increase the planting area to 60,000 hectares of Autumn-Winter rice, so rice export activities were maintained.
It can be said that this year, the rice industry has taken advantage of market opportunities, turning them into income for rice farmers and profits for rice production, trading and exporting enterprises.
Rice exports in 2023 could reach nearly 8 million tons and over 4 billion USD. This is a record number.
To maintain momentum for rice exports next year, what do you think is the important factor?
The results recorded in 2023 are just the beginning. The important issue is to maintain and develop the rice chain to ensure stable income for people and businesses in the long term.
On January 16, 2021, the Ministry of Agriculture and Rural Development issued Decision No. 555/QD-BNN-TT Approved the "Project on restructuring Vietnam's rice industry to 2025 and 2030".
On November 27, 2023, the Prime Minister signed Decision No. 1490/QD-TTg approving the Project "Sustainable development of one million hectares of high-quality and low-emission rice cultivation associated with green growth in the Mekong Delta by 2030".
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| Mr. Nguyen Nhu Cuong - Director of the Department of Crop Production (Ministry of Agriculture and Rural Development) (photo by Nguyen Hanh) |
The Mekong Delta is the country's key rice production region. This is the region with the most advantages in rice production in our country, contributing over 50% of the country's rice output and 90% of rice exports. Rice production in the Mekong Delta targets the export market and the domestic market in the high-quality rice segment.
The issuance of the Project is just the beginning. To implement the Project, there must be a strong participation of the Ministry of Agriculture and Rural Development and other ministries, localities, associations and industries.
When the Project is implemented, the Mekong Delta will become a specialized export area, increasing the rice value chain. In addition to exported rice, we will also exploit the multiple values of this value chain.
For example, straw will be exploited in a circular manner, avoiding burning and burying. At the same time, promoting businesses to invest in the industry. This will be the center and focal point to promote the rice value chain.
Along with that, applying technical processes will help reduce input costs, increase competitiveness, save materials, adapt to climate change and reduce greenhouse gas emissions.
In particular, the carbon exchange pilot, in addition to quantifying the contribution of the rice production industry in reducing greenhouse gas emissions, also creates a certain source of income for participating businesses and people.
Along with this, the state needs to invest systematically in infrastructure, irrigation, logistics, etc., thereby improving the rice value chain, increasing income for people and businesses, reducing greenhouse gas emissions, and creating sustainable stability for factors in the entire chain.
Rice prices are increasing, rice farmers in Dong Thap said they will switch from growing sticky rice to growing non-glutinous rice. Are you concerned about this?
The construction of rice variety structure needs to be based on market demand, not a rigid production plan. For rice exports, to move to the high-value market segment, it is necessary to have fragrant rice varieties, high-quality varieties according to the tastes of each market (long grain or round grain). For rice consumed domestically, it is necessary to promote local specialty varieties, local glutinous rice.
Regarding the market, according to forecasts from international organizations, rice prices may not be as high as in 2023 but may remain high in 2024-2025. Therefore, farmers' adjustments to rice varieties like this are also normal.
With rice, we have a harvest every 3 months. Therefore, based on market demand, we will have changes in the type of processed rice, fragrant rice, specialty rice or sticky rice. On this basis, the Department of Crop Production will coordinate with localities to promptly adjust the rice variety structure to suit, ensuring adaptation to market requirements.
It is forecasted that India will continue to maintain the ban on rice exports, and Cambodia's rice supply is expected to be in short supply in the first quarter of 2024. How will this affect Vietnam's rice exports, sir?
Vietnam exports 6.5 - 8 million tons each year, ranking 2nd or 3rd in the Top largest rice exporting countries in the world.
India accounts for 40% of the world's rice exports. Any move by India will have a positive or negative impact on the Vietnamese rice market.
For Cambodia, the rice export volume of this market is only about 1 million tons, this is also one of the rice exporting countries, adjusting Cambodia's export plan will have an impact but its impact will not be as big as India, Vietnam, Thailand.
What is your forecast for rice export turnover and output in 2024?
The 2024 rice production plan has been adjusted a bit, we will only plant 7.1 hectares of rice, the area has decreased slightly but Vietnam strives to still harvest over 43 million tons of rice.
This winter-spring crop, we are also affected by El Nino, but we have experience and are very proactive in responding to reduce damage.
We have a good irrigation system, besides, we have very good, high-quality, short-term varieties. The Ministry of Agriculture and Rural Development has coordinated with localities in adjusting the winter-spring crop planting season to minimize the impacts of El Nino on rice production.
Export rice prices on the world market are forecast to remain high in 2024 - 2025, which is favorable for Vietnam's rice production.
In 2023, rice exports are estimated to reach about 8 million tons. In 2024, if the situation is favorable, the production plan is ensured, the impacts of El Nino are minimized, and there are no large-scale epidemics or natural disasters, we will also achieve an export figure of 7.5 - 8 million tons of rice.
Thank you!
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