Sunday, April 27, 2008

Temporary halt on rice exports until end of June

Despite high rice export prices and the Mekong delta experiencing a bumper winter-spring rice crop with more than 9.3 million tonnes of rice, the Ministry of Industry and Trade (MoIT) will temporarily halt rice exports until the end of June.

MoIT Deputy Minister Nguyen Thanh Bien said enterprises nationwide have so far this year exported more than 1 million tonnes of rice for almost 403 million USD. The average rice export price was 400 USD per tonne, accounting for 57 percent of the current price. However, the deputy minister says postponing rice exports until the end of June is an export management measure to reduce quantity and increase value while ensuring national food security and the State’s interest. Deputy Minister Bien forecasted that world rice prices will continue rising from now until 2010, saying Vietnam recently made a record rice export price to the Philippines at 1,200 USD per tonne. He predicted the price may hit 1,500 USD per tonne next month. To ensure the interest of export businesses and farmers, the government has instructed banks to provide financial assistance to businesses to buy rice for storage.The measure is expected to keep unprocessed rice prices at 4,550 VND per kilo and processed rice prices at between 8,300-8,500 VND per kilo.
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