HCM CITY — Nine companies have registered to buy all 95,000 tonnes of salt inventory from farmers in HCM City’s Cần Giờ District, according to the city’s Department of Agriculture and Rural Development.

Trần Ngọc Hổ, deputy director of the department, said that salt trading companies would pay a price that would provide a profit equal to 30 per cent of farmers’ production cost.

Earlier last month, the city’s People’s Committee told the departments of Agriculture and Rural Development, as well as Industry and Trade, to ask several companies to buy salt from farmers in Cần Giờ District.

The farmers had a good harvest in the 2015-16 salt production season but faced declining prices, resulting in extra salt in stock.

Companies that buy salt from farmers will receive a 60 per cent interest rate reduction on loans. The purchasing period will end on October 1.

In the 2015-16 salt producing season, Cần Giờ farmers produced more than 140,000 tonnes, according to the district’s People’s Committee.

Of that figure, farmers have sold more than 45,000 tonnes, including 6,000 tonnes purchased by salt trading companies.

The price of salt fell from VNĐ60,000 (US$2.7) per 100 kilos at the beginning of this year to VNĐ20,000 ($0.9) per 100 kilos at the end of last month.

Huỳnh Khánh Duy, who produces salt in an area of 4ha in Cần Giờ’s Lý Nhơn Commune, said he had harvested about 400 tonnes of salt in the 2015-16 salt producing season.

Duy said he had sold only 50 tonnes because of low prices and had to store the remaining salt to wait for an increase of price.

With a coastline of 23 km, Cần Giờ has favourable conditions for making salt. The district has 727 households that produce salt on a total area of 1,671 hectares.  — VNS