Adjust tax rates, ‘cool down’ animal feed prices

At the press conference to announce socio-economic statistics in the second quarter and the first six months of 2021, Ms. Nguyen Thi Huong, General Director of the General Statistics Office, revealed that the producer price index of agricultural, forestry and fishery products has increased by 0.24% compared to the previous quarter and by 3.87% over the same period last year.

In the first 6 months of the year, the producer price index of agricultural, forestry and fishery products has increased by 4.23% over the same period in 2020. Meanwhile, the price index of raw materials used for agricultural, forestry and fishery production increased by 6.83%. All these factors lead to an increase in the prices of many agricultural inputs and fertilizers as seen in recent times.

Sharing concerns with the General Department of Statistics, in accordance with Mr. Duong Manh Hung, Director of the Statistics Department of Agriculture, Forestry and Fishery, from the beginning of 2021, the price of animal feed has increased 5-7 times, each time VND 200-300/kg. As stated by Mr. Hung, in terms of husbandry, especially in industries where animal feed costs account for a large proportion of input costs such as raising pigs, tra fishes, or shrimp, this has a huge impact.

Mr. Nguyen Viet Phong, Director of the Statistics Department of Trade and Services has put out a warning that the trade deficit has increased recently. Mr. Phong advised that the agricultural industry should soon promote the agricultural products value chain to stabilize the trade balance.

In addition to production, Director General Nguyen Viet Phong suggested that the Government have policies to “cool down” animal feed prices, such as adjusting the tax rate of corn kernels, soybean meal, or some other materials, to help farmers maintain production. Moreover, in the long term, ensuring the animal feed market helps to reduce the impact of the agricultural separation trend, which has long appeared in the majority of young rural workers.

"Agriculture has clearly demonstrated the supporting role of the economy in the first six months of 2021. Despite experiencing two Covid-19 epidemic waves, Vietnam's agriculture has avoided the rigidity in response, not isolating the whole area on a large scale, and ensuring connection and production maintenance. This will be a stepping stone for agriculture in particular and the whole country's economy in general to achieve high growth results in the last 6 months of the year", Director General of the General Statistics Office Nguyen Thi Huong affirmed.