THE PADDY HAS NOT CUT YET, THE PRICE INCREASES, RICE EXPORT IS ATTRACTING
Rice traders in the Mekong Delta said that after WS 2016-2017 crop, rice prices have risen at a high rate.
At this time, the early SA paddy has just harvested in some areas such as Hau Giang, Vinh Long, Can Tho. According to forecasts of Vietnam Food Association (VFA), paddy prices will keep high until September, 2017.
Productivity, output and price increase together
Movement of the rice trading market has become bustling, especially traders and some enterprises are in need of buying in order to have sufficient quantity to meet the deadlines of signed contracts.
In Can Tho, SA crop has 80,000ha, increasing more than 5,000ha from sesame land to paddy land because of late growing. The productivity is higher than SA 2016 crop at about 100 kg / ha. A trader who traverses all paddy fields outside of Can Tho, said: Paddy is nearly over in the field, so they will move to Thoai Son (An Giang) to deposit IR50404 at 5,000 VND / kg (wet paddy). The type of raw rice from this variety was purchased at 6,100 VND/kg, so far increased to 7,300 VND / kg.
Presently, SA crop is in the peak harvest. Hau Giang has a harvesting progress of over 22,500 / 77,000 ha; Vinh Long harvested more than 15,000 / 55,700 ha; Long An harvested over 37,600 / 221,700 ha. Provinces started in the harvest as Dong Thap harvested 107,000 / 198,000ha; Kien Giang harvested over 37,600 / 276,000 ha and An Giang harvested the early SA crop over 12,400 / 235,600ha.
Due to the good rice market price, farmers in some localities harvested the early SA crop, they will start sow AW crop early. In Can Tho, there are AW paddy fields about 40 days, it is still nearly two months to harvest, but traders made deposit of VND300,000-400,000 per 0,1ha, made the farming contract of IR50404 at 4,500 VND / kg.
Mr. Lam Minh Tri, Director of Co Do Agriculture Co Ltd, said: The company is located on the production land of Co Do farm, SA 2017 crop has just finished harvesting about 5,300 hectares with the yield over 5 tons/ha, higher than 100 kg/ha compared to SA 2016 crop. The company signed the farming contract to collect all quantity based on the production cost. However, due to the rapid price increase, some farmers sold paddy to outside traders and the company collected only about 70-80%.
The company focuses on production in two main crops of WS and SA. Particularly, farmers will grow AW crop by themselves, each year about 50-60% of the area. From now to the end of the year, the price of paddy is forecasted to increase sharply. Farmers sow 100% in this AW crop.
Rice exports are attracting
According to the enterprise s' identified, the rice market is turning positive. Rice export prices increase due to the increase demand in the world market, especially from Asian countries such as Bangladesh and Philippines. While Thailand, Pakistan, Cambodia ... rice price is high and not much stock. At this time in the Mekong Delta, the supply source was over after WS crop, SA crop has just harvested about 300,000ha. At the same time, Vinafood 1 and Vinafood 2 won the export contracts to the concentrated markets. In addition, enterprises in the region are more favorable comparing with SA 2016 crop thanks to having more customers and the signed commercial contracts.
Mr. Nguyen Trung Kien, Director of Gentraco JSC (Can Tho) said that it is forecasted that import demand of some countries could increase from 250,000 tons to 500,000 tons in coming time. Therefore, at this time, if any enterprise has cargo in stock, the ability to do business effectively.
In 2016, Gentraco exported 100,000 tons of rice. In the first half of 2017, Gentraco exported 80,000 tons. The rice market promises prospects. Gentraco is pursuing the goal of improving the quality of export rice to sell higher value, even for rice with average-quality rice can still sell high prices if the application of technology to improve quality and value.
By this way, in the last 2 years, Gentraco has had stable materials area in An Giang with 1,000 ha for specializing to grow IR50404 follow global standard (SRP) qualifying the order of processing instant cooked rice to export to EU market.
In early 2017, Gentraco expands its production in Soc Trang to invest in responsible agri-business in the rice value chain in Vietnam (GRAISEA) through Oxfam – Vietnam organizing, connecting relationship between enterprises and farmers, increase social investment to improve the supply of quality-rice and sustainability; To build the IR50404 rice production area with 200 ha under the SRP standard, Gentraco will purchase 300 VND / kg higher than the outside production.
Source: NNVN
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