HA NOI — The price of Cuu Long (Mekong) River Delta rice has risen by VND400 to VND3,200 a kilo.
The increase follows the Government’s decision to purchase 1 million tonnes of unhusked rice, says the Ministry of Agricultural and Rural Development’s Agricultural and Rural Development Policy and Strategy Research Institute’s Information Centre.
The rice industry has exported 235,000 tonnes of the grain in December alone, earning US$100 million.
Rice exports are expected to thrive again next year because food will again be scarce throughout much of the world.
The global economic crisis has driven many people into starvation and those living in the emerging world are likely to rely on rice instead of fruit, vegetables and meat.
In addition, major rice exporters Thailand and India plan to increase their reserves to ensure domestic food security.
Estimated global rice consumption is 426 million tonnes, up 1 per cent over 2008.
Finance ministry Directive 8486/VPCP-KTTH, which took effect eight days ago, has eliminated the export tax for rice as part of the Government’s effort to boost the grain’s export.
But the tax had only applied when rice was above US$800 a tonne FOB, explained Viet Nam Food Association (VFA) general secretary Huynh Minh Hue.
It now averaged $575 a tonne FOB, he said.
VFA figures show that Viet Nam has exported almost 4.5 million tonnes of rice so far this year for $2.6 billion. — VNS
Source : Vietnamnews