Vietnam delays plan to stock rice
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As rice prices are soaring, the Vietnam Food Association (VFA) finds it unnecessary now to buy rice from farmers to prevent prices from falling as it has planned.
Earlier, VFA planned to buy 1 million tons of rice from local farmers in order to keep rice prices at VND5,000 per kg to ensure profits for farmers.
But VFA on Monday said as current grain prices are much higher than prices of last year’s summer-autumn crops, the stocking plan can be postponed.
Nguyen Van Don, Director of Tien Giang-based Viet Hung Co. Ltd., said rice now fetches VND6,200 per kg on the market.
“Many rice exporters are suffering losses as their contracted prices for export are lower than the current domestic price,” Don said.
An official of VFA attributed the unexpected price hike to rice smuggling in the Mekong Delta.
He said some foreign firms have recently disguised as domestic traders to buy rice in An Giang and Dong Thap provinces to illegally transport it to other countries.
He said some foreign firms have recently disguised as domestic traders to buy rice in An Giang and Dong Thap provinces to illegally transport it to other countries.
