The Ministry of Industry and Trade (MoIT) and the Ministry of Agriculture and Rural Development (MARD) reached a consensus on the volume of rice to be exported from now until June at a joint meeting in Hanoi on March 3.

The decision was made following a surge in rice exports in the first two months of this year, amounting to nearly 1 million tonnes or a threefold increase against the same period last year.

The price of rice for export also shot up, reaching US$396/tonne in January and US$430/tonne in February. In February alone, Vietnam shipped abroad 625,000 tonnes, earning the country US$250 million.

Truong Thanh Phong, president of the Vietnam Food Association, said that the unexpected upturn on the global rice market has especially helped farmers who invested heavily in the winter-spring crops.

However, MoIT Deputy Minister Nguyen Thanh Bien expressed his concern that a rapid increase in rice prices will eventually drive up the consumer price index, which rose 1.17 percent in February against January. He called for solutions to this problem as the prices of other agricultural products such as maize and soybeans have also begun to rise on the global market.

He proposed that flexible measures be introduced to keep domestic rice prices under control and avoid any unhealthy effects on the common pricing level.

Both ministries agreed that 800,000 tonnes will be handed over to importers in March and the remaining 300,000 tonnes under contract will be shipped after June. They said this export plan will benefit farmers who are harvesting the winter-spring crop while also helping businesses to capitalise on developments in the market.

The plan will be submitted to the Prime Minister for consideration.