The Government’s much-touted rice stockpiling plan has yet to meet the objective of helping farmers gain higher profit as assistance as part of the plan has gone to intermediary traders rather than farmers.

Speaking at a meeting on a draft rule on temporary rice storage and direct support for farmers held in Kien Giang Province, Deputy Minister of Agriculture and Rural Development Bui Ba Bong said, “A more effective way should be thrashed out to help farmers sell their rice.”

Since 2008, the Government has many times assigned the Vietnam Food Association (VFA) to arrange purchases of rice from Mekong Delta farmers for stockpiling to prop up prices so as to ensure a 30% profit margin for farmers.

In the past few years, VFA and relevant ministries have insisted the program is very successful, with profit for rice growers ensured and rice export performance positive.

However, Vo Thanh Do, deputy director of the Department of Processing and Trade for Agro-Forestry-Fisheries Products and Salt Production, told the meeting: “The method for rice buying introduced by VFA for storage firms has failed as enterprises rarely buy rice directly from farmers but via intermediary traders.

“Therefore, farmers have not benefited directly from the program. Moreover, a majority of farmers often sell paddy before the program begins, so even when paddy prices increase during or after the program, farmers will gain nothing.”

Pham Van Du, deputy director of the Cultivation Department, stressed the need to avoid the situation in which designated enterprises buy rice at various prices.

A suggestion to directly offer farmers preferential loans to repay debts and store goods for better prices is seen as a breakthrough idea, preventing exporters from pushing down prices.

Du said: “A widespread view is the stockpiling plan directly supports farmers. This is a new idea that needs to be put into practice soon.”

According to the draft regulation, to take out soft loans from the program, farmers must have at least five tons of commercial rice. The conditions for enterprises vary depending on their production capacity and local demand.

Rice will be temporarily stockpiled at home, production facilities or warehouses of co-operatives. Commercial rice quality must be guaranteed.

However, the question is whether this idea will easily translate into reality or not as multiple arising problems were dissected at the meeting.

Nguyen Van Duong, vice chairman of Dong Thap, agreed with the draft regulation prepared by the agriculture ministry. Still, he cast doubt on the feasibility of the requirement for farmers to have at least five tons of rice.

“Will they invest in warehouses and drying machines with only five tons in their hands?” he wondered.

Meanwhile, Lam Hoang Sa, vice chairman of Kien Giang, said the best method should be farmers and businesses joining hands to store the staple food. However, it is necessary to group farmers into co-operatives.

“Farmers will not bring five tons of rice to enterprises to keep at their warehouses, nor will they develop storage systems or acquire drying machines. I think five tons is too small. It should be 50 tons or above,” Sa suggested.

Nevertheless, Mai Anh Nhin, director of the Kien Giang agriculture department, said storing 50 tons or more would help farmers with nothing but would only make the rich richer.

According to many participants, to ensure the quality of stockpiled rice, it is a must to equip standard drying machines. Still, they deemed this difficult because no farmer would bring five tons of rice to the drying facilities far away from their fields.

SGT