The Department of Agriculture and Rural Development of Kiên Giang Province, Lộc Trời Group and MB Bank sign an agreement to develop a 300,000ha area for growing high-quality rice in the province on July 4. — Photo courtesy of Lộc Trời

KIÊN GIANG — The Kiên Giang Province Department of Agriculture and Rural Development, Lộc Trời Group Joint Stock Company and Military Commercial Joint Stock Bank (MB Bank) on July 4 signed an agreement to grow high-quality rice on an area of 300,000ha at an estimated investment cost of VNĐ12 trillion (US$513.39 million) in the province.

The department and other provincial agencies will work with Lộc Trời Group to draft annual plans for it.

The land will be granted a planting area code and high-efficiency production models that Lộc Trời uses elsewhere in the Mekong Delta will be adopted here too.

All the rice harvested will be bought by Lộc Trời and its associates for export.

MB Bank will provide credit of up to VNĐ12 trillion for all production activities. The credit agreement is valid until December 31, 2024, after which the parties will decide whether or not to extend it.

Lộc Trời will also consider construction of a modern rice husking and drying mill in Kiên Giang, and build an agricultural information system and an innovation centre together with the province to gradually promote digital transformation in agriculture.

Also at the signing ceremony, Lộc Trời signed a contract to transfer the right to use two rice varieties, OM 18 and OM 5451, to the Kiên Giang Breeding Centre for Agriculture, Forestry and Fishery.

The group will support the centre with training for production, storage and preservation of rice to ensure the quality of seeds delivered to farmers is on par with what it supplies in other localities.

The country’s rice exports were up in both volume and value terms in the first half of the year to 3.5 million tonnes and over $1.7 billion . — VNS