As the harvest is approaching, the prices of farm products such as rice, fish, and coffee have fallen sharply and farmers are likely to suffer losses. The Government, therefore, has decided on a 100 percent interest rate subsidy scheme for businesses to help them buy farm products to stockpile on a short-term basis.

However, farmers have not benefited much from this policy as the temporary stockpiling of produce have not yet helped them or ensured sustainable production.

In fact, many farmers sometimes have to sell their products before they are harvested as they need money to live on and to buy pesticides. Meanwhile, implementing Government policies usually takes a long time, so in many cases, they only approach farmers when they have already sold most of their products at a low price.

In addition, floor prices for agricultural products have not been set, despite the fact that the Ministry of Finance has already issued guidelines to ensure a minimum 30 percent profit for farmers.

Most farmers say that to help them become more successful at selling their products and for businesses to be more active in their business operations, policies regarding temporary stockpiles should be informed at the beginning of the harvest when prices are not falling.

They also want floor prices to be fixed, so that businesses cannot delay buying farm produce to stockpile. Floor prices will also help to ensure profits for producers when prices drop.

As agricultural production in Vietnam still faces challenges and is dependent on various factors such as information and the weather, stockpiling is considered an effective method, showing the Party and State’s consideration for farmers. It will work well if it is implemented strictly.

To encourage sustainable agriculture production, the temporary stockpiling programme should be introduced directly to farmers. There should also be other ways for helping them such as offering subsidised loans, supplying high-quality varieties of plants and animals, and updating information on a regular basis.