Vietnam rice growers seek government intervention

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rice exportAfter Thailand’s controversial rice subsidy policy has led to a drop in global rice prices, the Vietnam Food Association is now seeking government approval to enlarge its rice stockpile by another 300,000 tonnes instead of selling it off immediately to keep prices stable.

The association also sought interest subsidy on bank loans for two months for the businesses making the purchase. It said this would mean the firms do not have to sell off their stocks to pay the interest after the normal government’s support ends in September.

Thailand last month slashed the price of its most common rice class from $420 to $380 per tonne to reduce its bulging stockpiles of around 17 million tonnes. However, it still pays a guaranteed 15,000 baht ($465) to Thai farmers in line with the disputed rice subsidy scheme that caused heavy overstocking.

Vietnamese stockpiles currently stand 700,000 to 800,000 tonnes, according to the association. The country hopes to export 7.5 million tonnes of rice in 2013. It has shipped 4.58 million tonnes valued at $1.96 billion in the first eight months of the year.

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Reading Time: 1 minute

After Thailand’s controversial rice subsidy policy has led to a drop in global rice prices, the Vietnam Food Association is now seeking government approval to enlarge its rice stockpile by another 300,000 tonnes instead of selling it off immediately to keep prices stable.

Reading Time: 1 minute

rice exportAfter Thailand’s controversial rice subsidy policy has led to a drop in global rice prices, the Vietnam Food Association is now seeking government approval to enlarge its rice stockpile by another 300,000 tonnes instead of selling it off immediately to keep prices stable.

The association also sought interest subsidy on bank loans for two months for the businesses making the purchase. It said this would mean the firms do not have to sell off their stocks to pay the interest after the normal government’s support ends in September.

Thailand last month slashed the price of its most common rice class from $420 to $380 per tonne to reduce its bulging stockpiles of around 17 million tonnes. However, it still pays a guaranteed 15,000 baht ($465) to Thai farmers in line with the disputed rice subsidy scheme that caused heavy overstocking.

Vietnamese stockpiles currently stand 700,000 to 800,000 tonnes, according to the association. The country hopes to export 7.5 million tonnes of rice in 2013. It has shipped 4.58 million tonnes valued at $1.96 billion in the first eight months of the year.

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