Consumers warned over rice price hike
Consumers warned over rice price hike
The price of rice may see a big surge over the next few months if the government does not introduce a sound policy to address the inflation threat.
According to a report from the National Statistics Bureau, it is possible that the price of rice will increase after remaining stable since the end of last year. The government and sectors concerned should be prepared to impose a sound scheme to address the problem.
Officials at the bureau and economists said the government must prepare to control the price of rice, the staple food in Laos, from July to October, as most growers will not sell their crop to markets until after the harvest in October.
“The price of rice will increase if farmers do not sell their stockpiled crops,” said an economist, adding that higher prices are common in the wet season and Lao people are used to the situation.
Most farmers do not grow rice for sale but for family consumption. They sell their rice only when they know they have a high yield and can secure supplies of the grain over the following year.
The Ministry of Planning and Investment has admitted that rice production this fiscal year will reach only three million tonnes, about 85 percent of the target.
The lower yields are attributed to the flooding which occurred last year, damaging crops and agricultural infrastructure around the country. The government is short of funds with which to rebuild the infrastructure needed to boost rice production this year.
Many farmers are now growing new crops such as coffee, sweetcorn and cassava, and are raising livestock because the prices for these are better than for rice, the ministry said in its report to the National Assembly.
The government has restricted exports of rice to neighbouring countries like Vietnam, to stabilise the price in Laos.
Economists said the government has a policy to stockpile rice and it must ensure a sufficient supply over the next few months, to keep the price stable. Security along roads between cities and rural areas also helps, they said.
At present, the price of rice in Vientiane is now stable at 65,000 to 135,000 kip per 12 kg depending on quality.
vientiane times
