PM orders food company to buy 500,000 tons of rice to keep prices high

Farmers in the Mekong Delta harvest around 2 million tons in the summer-autumn crop in 2009. (Photo: SGGP)

Prime Minister Nguyen Tan Dung has tasked the Vietnam Southern Food Corp. with buying 500,000 tons of rice from the summer-autumn crop to keep prices high enough so that farmers profit.

It has to complete the purchase by November 20 and store it until January 20 next year.

The Government will completely subsidize the interest on bank loans the corporation has to obtain to fund the buying.

Farmers in the Mekong Delta are expected to harvest around 2 million tons in the summer-autumn crop.

The Vietnam Food Association had also instructed wholesalers to buy 500,000 tons at a price not less than VND3,800 a kilogram at the beginning of this month.

Prices have risen by VND300-500 a kilogram, it said.

First-grade rice costs VND5,400, and second-grade rice VND5,200.

Vietnam has exported 4.72 million tons of the grain this year for more than US$1.9 billion. More than 147,000 tons were exported in the first 20 days of September for nearly $57 million.

By N.Ha – Translated by Thuy Doan

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