Price of rice in the Mekong Delta unexpectedly surged, with price of dried paddy rising by VND5,500-5,600 per kilogram after purchase of rice for temporary stockpiling ended.
On August 20, the price of low-quality IR 50404 variety crossed VND5,000 per kilo in some places, the strongest gain since the beginning of the summer-autumn crop. According to export rice suppliers, price of paddy used to produce 5 percent broken rice climbed to VND8,600-8,700 per kilo.
Besides frequent export orders to China, Indonesia, and other countries, rice price rose also because of information that Vietnam had recently signed a contract to export 500,000 tons of rice to Indonesia, and that the Philippines is likely to import more rice from Vietnam as its crops were seriously damaged in natural disasters.
It is expected that price would continue to advance further as rice stock is running out at the end of the summer-autumn crop, while some rice exporters are increasingly transporting small volumes through Cambodia to Thailand.
The Department of Agriculture and Rural Development in Long An Province has recently decided to develop a 100-hectare sample rice field which will get a fund of VND3 billion to grow its specialty rice variety-Nang Thom Cho Dao. Farmers will be supported 100 percent for high-quality seedlings and 30 percent for fertilizers and plant protection drugs.
Nang Thom Cho Dao rice will be packed under registered brand-name and with clear origin markings to prevent consumers from buying fake rice.
The People’s Committee of Kien Giang Province has also given permission to Kien Giang Forestry-Agro Limited Company to carry out a project to develop a high grade rice-growing area under VietGap standards, covering an area of 1,200 hectares, of which 40 percent will be allotted to almost 3,000 farmers so as to provide jobs.
