PM orders ensuring national food security amid global rice market fluctuations

In the directive, the PM pointed out major external and internal factors affecting local rice production, supply and export.

Globally, several rice producers have suspended exporting the commodity while many importers have increased the purchase of the produce, fuelling rice export prices.

In addition, the expiry of the Black Sea Grain Initiative along with adverse weather patterns, including floods and droughts have also caused the global rice market to fluctuate violently.

In Vietnam, dealers in some localities have hoarded rice massively, causing local supply-demand imbalance, and pushing up prices of rice unreasonably.

In this context, the PM requested relevant ministries, localities and national food corporations to act promptly in an attempt to ensure national food security in all situations and promote sustainable rice production and export.

Accordingly, he asked the designated agencies to keep a close watch on market developments and make an in-depth analysis of the impact of market fluctuations to promptly come up with response plans.

He also asked them to hammer out measures to stabilize the domestic rice market and crack down on illegal profiteering that intentionally destabilizes the market and reputation of Vietnamese rice.

The price of rice has skyrocketed in the global market in recent times after India, Russia and the United Arab Emirates issues a ban or a cut on rice exports.

On August 4, the export price of Vietnam’s 5% broken rice exceeded US$600/tonne, hitting a high of US$618/tonne, or US$20 more than the transacted price the previous day.

The export price of rice is forecasted to rise to US$700/tonne, even up to US$1,000/tonne in the coming time, in the context of a decline in global rice production and a decrease in the supply of rice from major rice producers.

In a recent interview to local media recently, Deputy Minister of Agriculture and Rural Development Hoang Trung affirmed that his ministry firmly grasps the market situation as well as rice production in Vietnam.

According to Trung, the total area under rice cultivation in Vietnam this year has reached 7.1 million hectares, large enough to churn out between 43 - 43.5 million tonnes of rice paddy, meeting demand for domestic consumption and export.

Specifically, 15 million tonnes will be for 100 million people, 9.5 million tonnes for processing, 1 million tonnes for breeding, and 2.5 million tonnes for national reserves. About 14-15 million tonnes of rice paddy, equivalent to 7-7.5 million tonnes of rice will be for export.

“We can be completely assured that in addition to ensuring enough rice for domestic demand, we can still continue to promote rice exports, taking advantage of market opportunities,: said Trung.