Long An proposes solutions to reduce difficulties in rice export

Long An proposes solutions to reduce difficulties in rice export

Long An Department of Industry and Trade proposed that the Ministry of Industry and Trade propose to the State Bank to consider the policy of loosening credit limits for the rice industry, helping businesses access rice purchasing to stabilize production.

Mr. Nguyen Tuan Thanh, Director of the Department of Industry and Trade of Long An province, said that currently exporting rice in the province still faces some difficulties.

Since then, businesses have been limited in the quantity of rice exports recently.

The difficulties businesses are facing are that some large traditional markets such as the Philippines and Indonesia have good control over information on rice import demand output, and traditional markets will often sign large volumes of several dozen. thousand tons and long-term contracts, so traders must purchase and reserve in advance.

Therefore, rice exporters will face difficulties in capital sources and credit limits from banks.

In addition, there is no mechanism to manage floor prices for rice products, leading to unfair competition and affecting brand building. Vietnamese rice.

On the other hand, the price of domestic rice raw materials differs greatly from the export contract, causing export enterprises to be ineffective at times.

In addition, the recovery and development of production and business activities of some businesses is still slow due to the post-COVID-19 impact. Limited management capacity affects the ability to sign export contracts.

[Rice exports in the first months of 2023 have many bright spots]

The implementation of large fields and production links between businesses and farmers are unstable, unsustainable, and difficult to replicate. The main reason is due to inconsistency in prices, harvest time, and purchasing methods.

Volatility increases gasoline prices causes transportation costs to increase, affecting production and export activities (ship fares and freight).

Faced with the above situation, Long An Department of Industry and Trade proposed that the Ministry of Industry and Trade make recommendations State bank Vietnam is considering having a policy to loosen credit limits for the rice industry, helping businesses access rice purchasing to stabilize production; Continue to guide businesses to access capital with low interest rates more effectively.

For Decree No. 103/2020/ND-CP dated September 4, 2020 of the Government regulating certification of fragrant rice types exported to the European Union; including 9 types of rice varieties in the list of fragrant rice varieties exported to the European Union that are entitled to import tax exemption according to quotas (including: Jasmine 85, ST 5, ST 20, Nang Hoa 9, VD 20, RVT , OM 4900, OM 5451, Cho Dao Resources).

However, through feedback from businesses, there are currently many other fragrant rice varieties being developed such as ST 24, ST 25, Dai Thom 8 and some rice varieties that are no longer suitable among the above 9 varieties.

Therefore, the Department of Industry and Trade recommends that the Ministry of Industry and Trade coordinate with the Ministry of Agriculture and Rural Development to soon update and supplement the list of fragrant rice types to suit current market needs.

In addition, Long An requested the Vietnam Food Association to coordinate with the Provincial Department of Industry and Trade to share market information to help businesses have orientation in production and export, as well as trade promotion programs. , market survey organized by the Association.

Currently in Long An province, there are 26 rice traders (there is 1 FDI enterprise - Da Nang Limited Liability Company exporting under an investment certificate).

Among them, there are 3 enterprises rice export directly to China; 3 company branches allowed to export rice have warehouses and milling facilities and 1 company rents warehouses and milling facilities in Long An.

In the first 4 months of 2023, Long An exported rice with a total output of 346,172 tons (an increase of 86,55% over the same period); turnover of 183.17 million USD (an increase of 94,11% over the same period).

The main export markets are China, Singapore, Malaysia, Indonesia, Africa and some "difficult" markets such as Germany, England, the Netherlands, and France.

In the first quarter of 2023, Vietnam's rice exports recorded good growth compared to the same period in 2022 in both traditional and potential markets. In particular, the value of rice exports to the EU recorded very good growth in many markets thanks to the export of fragrant rice products, high quality rice with high added value.

This shows that the quality of Vietnam's rice is increasingly improving, meeting the requirements of even demanding markets. Not only has Vietnam increased the export of strong rice varieties such as fragrant rice, sticky rice, and white rice, but it has also begun to export organic rice and rice enhanced with micronutrients, bringing high value and gradually reducing the export ratio. The export of rice is often of low quality.

According to Mr. Nguyen Ngoc Nam, Chairman of the Vietnam Food Association, from now until the end of the year, due to the impact of climate change, armed conflicts will continue to promote the need to import rice and food, which could lead to climate change. price fluctuations. Among them, the Indonesian market has emerged with an announced import demand of up to 2 million tons of rice; Bangladesh also increased its need to buy food./.

Thanh Binh (VNA/Vietnam+)

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