Long-term vision essential for overhaul of agriculture
Long-term vision essential for overhaul of agriculture
Long-term planning is needed to improve production and export of farm produce and seafood in the Cuu Long (Mekong) Delta region, Viet Nam's rice basket, Deputy PM Vu Van Ninh told a conference held in Can Tho City yesterday.
Ninh said the agricultural sector faced many obstacles because it lacked long-term planning and had failed to tap its potential.
He urged the Ministry of Agriculture and Rural Development and the Ministry of Industry and Trade to propose specific measures, both short- and long-term, to help improve and restructure the sector.
The conference was held to discuss ways to improve farm and seafood exports from the Delta region.
"Agriculture plays an essential part in our country's socio-economic development. It is necessary to re-organise the agricultural production on a demand-supply basis, restructuring crop and breeding to increase effectiveness, thus ensuring national food security," he said.
Detailed planning for each particular agricultural area is needed to improve crops, and more linkages between farmers and businesses are also needed.
Ninh said that government ministries should conduct research to set up a fund to offer financial support for agricultural production.
He also urged that hi-tech be applied to the agricultural sector to increase the incomes of farmers and businesses.
Taking the floor, Vu Van Tam, deputy agriculture minister, said that the sector had been facing many challenges since the beginning of this year, including breakout of diseases after the Lunar New Year, severe drought in the central and Central Highlands regions, and salination in the Mekong Delta.
Low demand as well as falling prices of farm produce and seafood products had affected farmers' incomes, he said.
In addition, weak purchasing power in the domestic market had caused large inventories, leading to lower prices, especially for rice and seafood products.
Export of farm produce and seafood fell by 5.4 per cent and 5.9 per cent, respectively, in the first quarter of this year compared to the same period last year, according to the ministry.
At the conference, Cao Duc Phat, agriculture minister, said: "We have both short- and long-term issues. For example, the low rice price is a short-term issue. But high rice prices and low quality and ineffective production in general are long-term problems."
Export challenges
Rice exports reached 3.485 million tonnes worth $1.504 billion in the first half of this year, an increase of 2.55 per cent in volume but a decrease of 2.04 per cent in value.
The export price on average fell by $20.23 a tonne, according to the Ministry of Industry and Trade.
As of the end of last month, the inventory of rice exports had reached $1.658 million tonnes.
Ho Thi Kim Thoa, deputy minister of Industry and Trade, said the world rice market would experience a further drop in price due to global oversupply of rice.
She reported that Thailand's rice stockpile had reached 17 million tonnes and India's, 35.5 million tonnes.
The demand for rice is uncertain because importing countries' plans have not been announced.
Importing countries are still waiting for prices to fall further due to oversupply of rice on the world market, according to Thoa.
China is expected to be the largest importer of rice from Viet Nam, with 3 million tonnes this year, due to a disparity in price between its local rice and imported rice from Viet Nam, according to the ministry.
Meanwhile, exports of seafood reached $560 million last month, a rise of 8.3 per cent over the same period last year.
Total seafood exports reached $2.861 billion in the first half of the year, an increase of 0.3 per cent year-on-year.
According to the Ministry of Industry and Trade, seafood exports will continue to face many difficulties due to low global demand.
The challenges are also attributed to the US's anti-dumping and anti-subsidy lawsuits on shrimp and tra fish. There are also many more trade remedies being imposed by Japan, South Korea and Mexico.
Thoa has asked commercial banks to continue to cut lending interest rates, increase loan amounts, and extend loan terms for farmers and businesses.
She has asked the Viet Nam Food Association to help businesses so they do not have to sell rice at low prices. This would ensure continuation of export activities.
She also asked exporters to improve production and competitiveness in international trade, and try to expand markets and build brands for products.
Deputy agriculture minister Vu Van Tam asked the Government to instruct relevant ministries and agencies to help with trade remedies and improve promotions.
Tam has asked the Government to draw up more policies to help farmers shift from rice to vegetable cultivation.
He also asked that the Government to advance capital to develop irrigation projects and other agricultural projects.
Also speaking at the conference, Nguyen Van Binh, governor of the State Bank of Viet Nam, said the agricultural sector was a priority of the banking system.
Binh said the banking sector would continue to provide credit to support the production and export of rice and seafood in the Mekong Delta, including the programme to buy one million tonnes of rice for the national reserve.
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