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Rice price rises as growers stockpile

Update: March, 17/2012 - 08:58

 

A food company buys rice from the Co Do State Farm in Can Tho. — VNA/VNS Photo Hoang Vu
CAN THO — The price of rice has increased steadily since Viet Nam Food Association (VFA) members began to buy up a million tonnes for its reserves on Thursday.

This is equivalent to 2 million tonnes of paddy.

Just after their harvest yesterday, farmers in An Giang Province's An Phu District sold undried IR 50404 paddy for VND4,500-4,600 a kilogramme and dried paddy sold for VND5,200-5,400, up by VND300 compared to the prices last week.

Tran Tuan Kiet, a farmer from An Khanh Commune in Dong Thap Province's Chau Thanh District, said he harvested 8,000sq.m of IR 50404 paddy and made a profit of up to VND1.7 million per 1,000sq.m.

VD fragrant and long-grain paddy is fetching VND5,600-5,700 while dried jasmine and fragrant paddy grown by the Co Do State Farm sold for VND7,200.

At these prices, farmers could make profits of VND25-30 million from a ha of high-quality varieties, Kiet said.

Nguyen Van Be, who grew three ha of IR 50404 paddy in An Giang Province's An Phu District, said traders were going around in the area to buy whatever paddy they could instead of just high-quality varieties as they did earlier.

"That is the impact of the campaign to buy 1 million tonnes of rice," he said.

He is also hoping to get higher prices for the IR 50404 paddy he has harvested.

VFA members began to buy paddy/rice for the reserve at prices of above VND5,000 per kilogramme of paddy to ensure that farmers earn profits of at least 30 per cent as required by the Government.

Pham Thai Binh, general director of Trung An Ltd in Can Tho's Thot Not District, said his company planned to buy 20,000 tonnes of rice for the reserve and his staff had bought 800 – 900 tonnes a day in the last two days.

Ho Minh Khai, director of the one-member Co Do Farming Ltd, said loans from banks had helped his company buy 8,000 tonnes of rice as instructed by the VFA.

In addition to companies in Can Tho, VFA members in other Mekong Delta provinces such as Soc Trang, Bac Lieu, Dong Thap and An Giang have also readied warehouses for the grain.

According to the VFA, in the past few years food companies have enhanced their storage capacity.

Under a plan by the Ministry of Agriculture and Rural Development, Mekong Delta provinces have created a warehousing network with a capacity of some 4 million tones of rice.

Almost half of that capacity is accounted for by the 24 subsidiaries of the Southern Food Corp (Vinafood II).

Vinafood II has announced plans to buy 3.8 million tonnes of paddy during the winter-spring crop which is likely to be fully harvested in the next month or two. — VNS

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