Cambodia Rice News: World Rice News: Vietnam Plans New Model for Rice Reserve Program

Vietnam Plans New Model for Rice Reserve Program

Following Vietnam’s Agriculture Ministry’s allegations that farmers are unable to benefit from the rice reserve purchase program, the Deputy Agriculture Minister has asked his ministry and the Vietnam Food Association (VFA) to find out ways to ensure profits for rice farmers.

The Vietnamese government introduced the rice reserve purchase program to help stabilize prices during the harvest season when rice prices usually dropped sharply due to anticipation of increased supplies and a shortage of storage space.

Recently, the government ordered the VFA to buy half a million to one million tonnes of rice for the reserve with the help of private companies which received interest-free loans for buying rice from farmers. The move was aimed to ensure that farmers get at least 30% profits.

The VFA claims that the participating companies have completed their purchases and rice farmers have been paid high prices. However, the Agriculture Ministry contends that farmers could not get good prices for their crop because most of them had already sold their paddy to traders (at lower prices) before the program began.

In response, the Deputy Agriculture minister has asked the ministry and VFA to develop models under the rice reserve purchase program that will ensure that farmers get at least 30% profits.

Allowing farmers to store paddy in their houses and at cooperative storage facilities with interest-free bank loans for those storing more than 5 tons of paddy are among the suggestions. Food companies that agree to buy paddy directly from farmers will also be eligible for such loans.

Source: Oryza/9August2012

More about Cambodia Rice Exporter, please visit: http://www.cambodiaorganic.com/
Cambodia tours=> http://www.tourismindochina.com/cambodia/tours/
Vietnam tours=> http://www.tourismindochina.com/vietnam/tours/
Laos tours=> http://www.tourismindochina.com/laos/tours/