VietNamNet Bridge – Higher energy costs may cause farmers to cut back on production and leave their land fallow, Viet Nam Farmers Association vice chairman Nguyen Duy Luong tells Nong thon Ngay nay (Countryside Today) newspaper.

What difficulties are farmers having to cope with in the face of fuel price hikes?

The rise in prices of petrol, gas and electricity has raised the cost of fertilisers, feed and other materials. Price increases cause agriculture production costs to rise, which in turn lowers competitiveness. That will cause farmers to cut back on production because they don't see enough to cover irrigation and transport fees and leave a profit. Likewise with breeders and fishermen. The danger is they will lose interest and if that is the case then tens of thousands of animal and poultry farms could sell their stock. In short, high costs will cause losses to farmers if they continue production and they'll be unemployed if they stop.

What is your assessment of the Government's measures to stabilise the macro-economy?

The Viet Nam Central Farmers' Association supports the Government's measures to stabilise the macro-economy and curb inflation in the face of price hikes.

The Government has cut down on public investment but has given priority to investment in agriculture and rural development. It has also approved the sale of electricity to poor households at preferential prices.

However, the Government needs to provide a concrete support package to encourage farmers to continue production.

What specific support is needed?

The association requests the Government to provide interest rate support and instruct commercial banks to lend to farmers to buy materials for agriculture production. It may also encourage farmers to speed up production and raise output if the Government supports the cost of input materials. For instance, fishermen should have their petrol and oil supported while crop farmers should be given help with irrigation and transport fees for each hectare of crop planted.

What has the association done to help farmers overcome difficulties caused by price hikes?

The association has mobilised associations in cities and provinces to give encouragement to farmers and to persuade them to apply advanced scientific and technological methods and select plants suitable to local conditions to save fuel and energy.

In an attempt to limit the impact of inflation and price hikes, the association has also instructed its members to build and expand the number of production models in their localities. Through these models, farmers are mobilised to support each other, with well-to-do farmer households supporting the ones in difficulty.

Associations have also been asked to check Government policies on agriculture and rural development and propose timely improvements to the Government to help farmers get over their difficulties and support them in production.

VietNamNet/Viet Nam News