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Weak Demand, Vietnam Considers Reducing Rice Production Area

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Vietnam's 5 percent broken rice price fell to around US$390 per tonne, the lowest since February 2020, due to weak demand.  Vietnam is the third largest commodity exporter in the world after India and Thailand.

Director of Cereals of the Directorate General of Food Crops, Ministry of Agriculture (Kementan) Bambang Sugiarto emphasized that the condition of Indonesian rice in the next five years would still be available even more than enough at all times.

Hanoi, Jurnas.com – Vietnam’s Ministry of Agriculture will consider cutting rice planting area if grain prices fall further. It comes as farmers struggle to lower their new crop due to sluggish demand and tight movement restrictions.

“We have to consider plans to reduce the rice-growing area to make way for other, more profitable crops,” Vietnam’s Agriculture Minister Le Minh Hoan said in a statement posted on a government website late Tuesday.

Vietnam’s 5 percent broken rice price fell to around US$390 per tonne, the lowest since February 2020, due to weak demand. Vietnam is the third largest commodity exporter in the world after India and Thailand.

Hoan did not say how much Vietnam plans to cut rice production area, but state media reports quoted the ministry as saying earlier this year it could cut rice growing area by 5.4 percent to 3.5 million hectares (8.6 million hectares) by 2030.

“We can’t put farmers at risk to meet our rice export targets,” Hoan said.

Farmers are having a hard time selling their freshly harvested produce as traders are unable to make purchases due to COVID-19 movement restrictions as Vietnam battles its worst outbreak to date.

Rice purchases by traders from the ongoing summer-autumn harvest in the Mekong Delta’s An Giang province have halved from the same time last year, the government said in the statement.

Traders said export activity was slowing due to weak demand and stiff competition from Thailand and India.

Rice exports from Vietnam in the first seven months of this year fell 12.7 percent from a year earlier to 3.5 million tonnes, according to government customs data. (Reuters)

TAGS : Vietnam Rice Area for COVID-19 Pandemic

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