MoIT has proposed resuming rice exports from April. — Photo thuongtruong.com.vn

The Ministry of Industry and Trade (MoIT) has proposed to resume rice exports from April, with a volume of 400,000 tonnes, after it has compiled reports on production, domestic consumption and exports to submit to the Prime Minister.

In the ministry’s report sent to the PM, it suggested exporting 800,000 tonnes of rice in April and May. In the last week of April, based on the development of the novel coronavirus (COVID-19) pandemic and reports of relevant ministries and sectors, the Prime Minister will consider rice exports in May.

The ministry has also proposed to apply monthly quota for rice exports during the COVID-19 pandemic.

The report was made after the ministry received feedback from a number of enterprises about the Government’s decision to suspend rice exports on March 24.

The suspension is to implement the conclusion made by Prime Minister Nguyen Xuan Phuc at a national online meeting on food security in the context of COVID-19 pandemic held in early March, during which he affirmed that food security must be ensured in every situation.

According to the MoIT report, in the context of the pandemic, drought and saltwater intrusion, Viet Nam is estimated to produce 43.5 million tonnes of paddy this year, including 20.2 tonnes from the winter-spring crop. Of which, the output of the Cuu Long River Delta (Mekong Delta) is estimated at 10.8 million tonnes.

Regarding consumption and storage, the Ministry of Agriculture and Rural Development (MARD) forecasts domestic demand this year to reach 29.96 million tonnes of paddy, including national reserves.

Specifically, the domestic consumption is 14.26 million tonnes of paddy, while the paddy volume for processing food products is 7.5 million tonnes. Meanwhile, there are 3.4 million tonnes to supply the livestock sector, one million tonnes used as seed and 3.8 million tonnes for national reserves. Thus, the remaining paddy for export is about 13.5 million tonnes, equivalent to 6.5 - 6.7 million tonnes of rice.

According to the Viet Nam Food Association (VFA), as of March 27, VFA-member enterprises have not yet shipped a total of 1.6 million tonnes of rice under signed export contracts. Of which, they need to have delivery of 1.4 million tonnes from now until May 31, said the MoIT. Meanwhile, VFA member enterprises have a total of 1.65 million tonnes in stock, reported the Voice of Viet Nam (VOV).

To ensure domestic consumption, the 20 largest rice exporters must sign contracts with at least one supermarket system to supply 5 per cent of their inventory when required. — VNS

Ministry of Industry and Trade proposes resuming rice exports

The Ministry of Industry and Trade (MoIT) has proposed resuming rice exports from April, with a volume of 400,000 tonnes, after it has compiled reports on production, domestic consumption and exports to submit to the Prime Minister.

Mekong Delta faces rice crisis as exports are interrupted

Hundreds of thousands of tons of rice in Mekong Delta remain unsold as merchants have stopped collecting rice. Farmers fear the rice price will drop dramatically if Vietnam stops exporting rice.