Ministry asks for funding to guarantee crop prices
Ministry asks for funding to guarantee crop prices
The Ministry of Agriculture and Forestry has asked the government to set up a fund which would guarantee fixed pricing for agricultural products.
The fund would help farmers, and also give more confidence to business operators, who are more likely to invest if there's a fixed produce price, Minister of Agriculture and Forestry Vilayvanh Phomkhe said.
The request came last week during a meeting between President Choummaly Saysone and officials from the Ministry of Agriculture and Forestry.
At the meeting, Mr Vilayvanh said the markets for agricultural products - particularly rice, sweetcorn and coffee – both domestically and overseas need more funding and development.
“Quality has to be guaranteed if products are to be sold locally and exported, so we need to encourage businesses to participate strongly in this sector,” said Mr Vilayvanh.
The most common commercial crops in Laos are rice, sweetcorn, sugarcane, cassava and coffee.
“But it's difficult to process sweetcorn because there aren't enough processing plants,” Mr Vilayvanh said.
Sweetcorn cultivation is expanding around the country, with most grown in Xayaboury, Luang Prabang, Oudomxay and Bokeo provinces.
Some sweetcorn growers in Xayaboury have recently switched to cassava, because processing plants are closer to their farms.
This year's harvest should yield good quality sweetcorn, after provincial officials worked with domestic and foreign companies to set up large commercial dryers.
However, sweetcorn farmers and traders are concerned about the viability of the foreign market.
Farmers are also concerned about crop quality and yields in the wake of severe weather, because the price plummets and a lot of produce is dumped.
But the presence of a fund should encourage them to replant later in the season, to compensate for their losses.
The government last year approved 50 billion kip to set up rice stockpiles in provinces, to ensure rice sufficiency, security, and price stability in the event of a natural disaster.
Rice stockpiles have helped to ease shortages in Xekong, Attapeu, Huaphan, Oudomxay, Phongsaly, and Luang Prabang provinces.
The provinces are given funding for farmers to grow the rice, which is then stored in mills and sold later when the price peaks.
Growing crops on a commercial basis requires close cooperation from the sectors involved, including public works and transport, industry and commerce, electricity, and the Agricultural Promotion Bank, Mr Vilayvanh added.
vientiane times
