One million tonne rice surplus reached last year

Jun 18th at 10:44
18-06-2013 10:44:21+07:00

One million tonne rice surplus reached last year

Laos is currently producing a rice surplus of more than 1 million tonnes over total domestic demand, with the government pushing even greater production targets for export.

Last year, the Ministry of Agriculture and Forestry encouraged farmers to produce 3.4 million tonnes of rice, with 2.38 million tonnes the estimated amount required to satisfy domestic demand.

Last year, the country exported more than 100,000 tonnes of rice products (including paddy and polished rice) to Vietnam, Thailand, China and the European market.

According to Director General of the Agriculture Department, Dr Monthathip Chanphengsay, thousands of tonnes were also unofficially exported along the country's borders.

Rice was third biggest commercial export crop in Laos, after coffee and maize. The country earned US$60 million from coffee exports and US$55 million from maize last year, while rice brought in about US$10 million.

Some 100,000 tonnes of rice could not be exported because of quality issues. Despite the surplus, some people in rural areas with limited land available for cultivation were still left with only enough rice to sustain them for three to 10 months.

Many rural local farmers are still growing only enough rice to meet the needs of their family.

This year, the ministry plans to encourage farmers around the country to produce 3.8 million tonnes of rice, but officials are not confident farmers will reach the target, after only 400,000 tonnes was produced this dry season.

During the wet season, the ministry will encourage farmers to grow rice across about 720,000ha country-wide, aiming to harvest in excess of 4.5 tonnes per hectare.

Flooding and prolonged dry periods are major obstacles to farmers achieving this target.

Most of the cultivation occurs on flat land areas in Vientiane, Borikhamxay, Khammuan, Savannakhet and Champassak provinces.

Laos is aiming to produce 4.2 million tons of rice by 2015, with a view to becoming a rice exporter alongside its neighbours.

Population growth has triggered greater demand in recent years for the staple grain on Southeast Asian and world markets, creating the possibility for Laos to export rice within the region.

Last year, it announced plans to join neighbouring Vietnam, Cambodia, Myanmar and Thailand in establishing a rice exporting cooperative aimed at gaining leverage on the international rice market.

A report by the Asian Development Bank predicted Laos will be able to shift its status from rice importer to a minor rice exporter over the next decade if it can maintain current grain production and consumption growth rates.

However the US Department of Agriculture has warned Laos faces considerable constraints for future rice production, including limited arable land suitable for rice cultivation, a vastly underdeveloped irrigation capacity, and extreme underfunding for agricultural crop extension programmes.

vientiane times



NEWS SAME CATEGORY

V & T eyes more luxury car sales

V & T Auto Service Company plans to supply 200 luxury cars to the public each year after officially opening its first showroom in Vientiane last Sunday.

Thai companies break new ground in stem cell therapy

Superior A.R.T, a Bangkok based fertility clinic, and Thai Stemlife Co. Ltd. recently revealed a breakthrough in stem cell technology and bone marrow...

Lao inflation falls but price hikes persist

The average inflation rate in Laos over the first six months of this fiscal year stayed at 4.85 percent, while economists urged the government to introduce concrete...

Laos targets US$2b in exports next fiscal year

The value of Lao exports is expected to reach US$2,178 million next fiscal year, according to a government report.

New cooking oil company to build local packaging plant

A new local cooking oil supplier, Lao Agriculture Development Import Export Sole Co Ltd, plans to build a packing factory at the Km21 Vientiane industrial zone...

Asean delegates discuss single window service

Delegates from Asean member countries met in Vientiane yesterday to discuss legal and regulatory matters concerning the implementation of the Asean Single Window...

Socio-economic development in Xayaboury shows steady growth

The pace of socio-economic development in Xayaboury province is growing, up by 9.39 percent in the last six months of this year, representing a Gross Domestic...

Laos works hard for Asean integration

“The Lao government has paid atten tion to implementing the work plans of the Initia tive for Asean Integration by narrowing various development gaps to enable the...

Cooperation the focus of trade expo in China

Yunnan province: More than US$200,000 in Lao goods went on display at the 1st China-South Asia Exposition and 21st China Kunming Import and Export Fair, held in...

Champassak sees strong income growth from vegetable exports

Champassak province's socio-economic development, especially in the agriculture sector, has seen steady growth in the last fiscal year with revenues grossing in...


MOST READ


Back To Top