Rice prices in the Mekong Delta over the last few days have dropped by VND100-300 per kilogram after the Vietnam Food Association decided to halt the purchase of one million tons of summer-autumn rice for stockpiling.
One kilogram of long-grained rice has dropped to VND5, 800-6,000 while the low-quality IR50404 rice variety is now reduced to VND5, 500-5,600 per kilogram in several areas like Can Tho City, Soc Trang and Hau Giang Province.
Ly Van Khoa, director of a rice husk factory in Chau Hung Commune in Thanh Tri District of Soc Trang Province said that rice prices have decreased by VND300 per kilogram because of halting the rice purchase.
According to Dr Le Van Banh, head of the Mekong Delta Rice Research Institute, the association has urged farmers to sell their rice as they are afraid that the price will further reduce.
Adding to the woes, labor rates have also skyrocketed by VND70, 000-100,000 to stand at VND300, 000-350,000 per person per day for harvesting rice in muddy and flooded fields where rice combine harvesters are unable to function.
The Mekong Delta presently has 5,000 rice combine harvesters which can only meet 30 percent of the region’s demand.
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