On February 21, the price of paddy bought at the field was at VND4,400-5,500 per kilogram, depending on varieties, up VND100-150 per kilogram compared to previous days.
Mr. Tran Chi Hung, director of the Department of Agriculture and Rural Development of Hau Giang Province, said that at a meeting with the provincial government recently, six local firms agreed to sign contracts to buy paddy for 22,000 hectares out of 78,000 hectares of winter-spring rice crop. These firms also pledged to buy paddy that does not include in the contract upon the market price.
Firms have been focusing on buying commodity paddy of the winter-spring rice crop. They feel encouraged when the ministries of Agriculture and Rural Development and Industry and Trade and banks had a meeting to discuss thoroughly consumption solutions for winter-spring rice crop in Mekong Delta provinces, said Mr. Nguyen Trung Kien, chairman of Gentraco.
According to some firms, farmers should not rush into selling winter-spring paddy so as to prevent firms from buying paddy at low prices, dragging down export prices, causing losses to both farmers and firms.
VietNam Southern Food Corporation (VINAFOOD 2) is sending its twelve subsidiaries to purchase winter-spring paddy at 34 places in the Mekong Delta. Rice exporters in the Vietnam Food Association have also proposed financial aid for purchase of paddy.
It is forecast that the demand for rice of the Philippines and Indonesia will increase in the first quarter of this year. Therefore, it is essential for Vietnamese rice exporters and farmers to temporarily stockpile paddy at this moment and wait for rice prices to increase.