09:46 | 17/08/2016 Trade
(VEN) - The Ministry of Agriculture and Rural Development’s Department of Crop Production Director Ma Quang Trung talked about bringing high quality rice varieties into production to promote exports in an interview with Vietnam Economic News’ Phuong Lan.
How do you assess this year’s rice exports?
Rice exports experienced complex fluctuations in the first half of this year. Export rice volume and value suddenly increased in the first quarter as businesses implemented large orders signed at the end of 2015. In the second quarter, export turnover of rice started declining. In addition, the impact of drought and saltwater intrusion led to a fall in rice volume of around one million tonnes, resulting in a price increase in domestic market.
The rice market continues to be unpredictable in the remaining months of this year as Thailand is selling rice in stockpile, affecting supplies on the global market. Vietnam’s rice exports are expected to reach around 5.5-5.6 million tonnes this year.
Thailand continues to discharge a massive volume of rice in stock. How will it affect Vietnam’s rice exports?
The stockpiled rice sell-off from Thailand will affect Vietnam’s rice exports as its rice volume has a long storage and only meets requirements to export to China, Southeast Asian and African countries that are Vietnam’s traditional markets.
High quality rice accounts for around 29 percent of total exports, while medium and low quality rice is exported to low-grade markets. With the determination to discharge rice in stock, Thai rice is sold at competitive rice against Vietnamese rice.
A long term solution for this problem should be the coordination between the Ministry of Agriculture and Rural Development with ministries and departments, including the Ministry of Industry and Trade to give out forecasts and seek solutions to maintain market share, while bringing high quality rice varieties into production.
What solutions has the Ministry of Agriculture and Rural Development adopted to promote exports and improve the value?
The Ministry of Agriculture and Rural Development has proposed many solutions such as reducing input costs of seeds and pesticides to encourage farmers to grow high quality rice varieties.
An increase in high quality rice growing areas will help Vietnam promote exports. Some businesses in Mekong Delta have successfully exported some rice varieties to Australia, Japan and the US.
The Ministry of Agriculture and Rural Development will continue to encourage farmers to expand high quality rice growing areas in order to compensate for rice shortages during the winter-spring rice crop.