Increase 50,000 hectares of autumn-winter rice in the Mekong Delta to seize market opportunities

The fact that India and some countries have banned rice exports, while some countries have increased their reserves and reduced the sale of rice, is considered an opportunity for Vietnamese rice grains, pushing up Vietnamese rice prices. According to information from the Ministry of Agriculture and Rural Development, the price of rice in this period is about US$ 534/ton, up 9.2% over the same period in 2022.

This issue received significant attention from the press during the regular press conference in July 2023 of the Ministry of Agriculture and Rural Development. Most reporters are interested in taking advantage of this opportunity for the agricultural sector, the ability to ensure food security in the country, and how the El Nino phenomenon that is starting to appear will affect this opportunity.

Nguyen Nhu Cuong, Director of the Department of Crop Production (Ministry of Agriculture and Rural Development), affirmed that the current rice market is flourishing, benefiting farmers and exporters.

"According to the plan of 2023, the whole country planted about 7.1 million hectares, equivalent to an expected output of over 43 million tons. Up to this point, rice is growing and developing well through checking and understanding the situation in the growing areas across the country. If there are no serious natural disasters and widespread epidemics, 2023 will certainly be a good year for rice with an output of over 43 million tons," said Nguyen Nhu Cuong.

The leader of the Department of Crop Production also added that the unit has coordinated with localities to solve production-related problems from now until the end of the year and is ready for the winter-spring crop in early 2024.

Regarding the El Nino issue, Mr. Cuong said this phenomenon will significantly affect the production of crops in 2024 in the Mekong Delta. However, based on the experience of dealing with El Nino in 2015-2016 and 2019-2020, the Department plans to deal with this phenomenon. For example, in the El Nino wave in 2019-2020, no rice area was lost due to the solutions from 2015-2016.

“In addition to soft solutions on changing crop structure and seasons, we also have a system of hard solutions related to irrigation works across the country to minimize the impact of El Nino on the crop industry ”, said the Director of the Department of Crop Production.

Returning to the market issue, to take advantage of the opportunity when both prices and demand increase, Cuong said that the Department of Crop Production had increased the area of autumn-winter rice in the Mekong Delta from 650,000 hectares to 700,000 hectares to take the opportunity.

In addition, the Ministry of Agriculture and Rural Development has also advised the Government to issue a directive to increase rice exports in this period, whereby relevant ministries, branches, and localities will coordinate with the Ministry of Agriculture and Rural Development to take advantage of this opportunity of the rice industry.

Answering more about food security issues with journalists, Director General Nguyen Nhu Cuong affirmed that with an estimated output of over 43 million tons of rice today, Vietnam can boost rice exports without still meeting domestic demand.

Nguyen Quy Duong, Deputy Director of the Plant Protection Department (Ministry of Agriculture and Rural Development), said that about diseases on rice, this year, the southern provinces have a phenomenon of planthoppers, while the North has black-striped dwarfs. However, with the experience of dealing with epidemics in previous crops, the Department took the initiative and used many measures to control the situation well.

“Locals have cut off regular staff in areas with high infection pressure to prevent early. In addition, the Plant Protection Department also directed the centers to closely monitor the production situation across the country to ensure a yield of 43 million tons of rice for 2023," Nguyen Quy Duong shared with the press.

Also, at the press conference, units of the Ministry of Agriculture and Rural Development advised businesses to assess the status of existing reserves, supply, and market demand when negotiating a new contract to reach the highest price to ensure the highest possible profits for both businesses as well as rice farmers.

Forestry and fisheries determine export targets

Since the beginning of the year, the agricultural sector has faced many difficulties ensuring export turnover. The two primary industries, forestry, and fisheries, have continuously decreased compared to the same period in 2022.

Specifically, in the first seven months of 2023, seafood exports reached US$ 4.95 billion, down 25.4%; timber and non-timber forest products reached US$ 7.79 billion, down 25.5%. These things pose a challenge for the agricultural sector in fulfilling the Government's target of a turnover of US$ 54-55 billion.

However, throughout his statements, Deputy Minister Phung Duc Tien was consistent with the above goal. At the regular press conference in July 2023, he assessed that, despite challenging conditions, the entire agricultural sector still strives to achieve the target, which is most clearly shown in the development indicators of the first month of the third quarter of 2023.

Regarding the export target of US$ 54-55 billion, the Deputy Minister said that this target could be achieved if the two main sectors, forestry, and fisheries, regain their growth momentum in the second half of 2023.

Some optimistic signals have appeared, such as the number of orders increasing again and many large and potential markets with the two industries mentioned above, such as the US and the EU... gradually growing purchasing power.

In particular, forestry and fisheries receive the Government's deep attention. Prime Minister Pham Minh Chinh chaired a meeting with the Vietnam Association of Seafood Exporters and Producers (VASEP) and the Vietnam Association of Wood and Forest Products (VIFOREST) in April. Through listening to the thoughts of two organizations, the Prime Minister directed the State Bank to deploy a credit package of VND 5,000 billion for the forest and fishery products field in Document 5631/NHNN-TD.

Accordingly, borrowers are customers with projects and plans to serve production and business activities in forest and aquatic products. The lending interest rate in Vietnam dong is at least 1-2 %/year lower than the average lending interest rate of the same term (short-term, medium-term, long-term) of the lending bank applied in each period.

Commercial banks shall, according to their competence, exempt or reduce service fees for customers participating in this program following the bank's law and operation scale. To date, 12 commercial banks have registered to participate in the program.

With the timely and accurate resolution of the Government, together with the reports of the Department of Forestry and the Department of Fisheries, Deputy Minister Phung Duc Tien said that the two industries will fulfill the export target of 17 and US$ 9-10 billion by the end of the year.

"Forestry and fisheries account for a large proportion in the structure of export turnover. Under the current conditions, the two industries need to be more active and proactive in preparing raw materials, and signing orders, to take full advantage of opportunities when the markets of other countries prosper", said the Deputy Minister.