Vietnamese firms to stockple 1 mln tons of rice

TN News

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The Vietnam Food Association said its members will stockpile one million tons of rice to keep prices at a level that can ensure profits for farmers.

The purchases will be made at no less than VND5,000 per kilogram by around 60 member companies starting March 1.

The food association said it is seeking support from banks in providing loans for the purchases.

Truong Thanh Phong, chairman of association, said Vietnamese exporters should be patient, warning them against offering their rice at low prices.

Rice prices will not fall from here, and they may even surge if weather conditions are unfavorable, he added.

Vietnam is the world's second largest rice exporter and it can manage its shipments in a way that can keep prices at a high level, said Cao Minh Lam, the director of a trading company in the Mekong Delta province of An Giang.

Lam said Vietnamese rice is now cheaper than the rice from Thailand and Pakistan. However, large buyers still anticipate that Vietnamese exporters will lower prices further after the current winter-spring crop is completely harvested.

The Philippines, Vietnam's biggest rice importer, has not signed any contracts with Vietnam this year. Vietnamese exporters expect orders from the Philippines will come in the second half of 2011.

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