Chinese companies expand rice investment in Xayaboury
Chinese companies expand rice investment in Xayaboury
Chinese companies this dry season have expanded their investment in rice production in Xayaboury province after one company benefited substantially in the last dry season.
They signed up for contract farming with farmers on about 200 hectares in Xienghone, 60 hectares in Xayaboury and 350 hectares in Phieng districts according to the provincial Agriculture and Forestry Department.
In the contract, the companies supply the rice seed, fertilizer and technical assistance to the farmers, while the farmers have the land for planting and provide the labour, the provincial agricultural official, Mr Khamphone Singngarm, told Vientiane Times on Friday.
The companies are wanting to obtain two varieties, white rice and sticky rice, with most of the crops being produced for export although some will go to supply the domestic market, he said.
In the last dry season only one company contracted with farmers in Xienghone district, while a new company has just come to contract in this dry season, said Mr Khamphone.
This first Chinese company has been doing agricultural business in the province for many years but it invested in producing dry season rice for the first time last year.
In the past it encouraged farmers in Xayaboury province to grow different kinds of crops for export to China as well as selling some to the domestic market, he explained.
As the farmers cannot sell directly to a rice market in many cases, the provincial authorities have this year required the company to expand the areas it is using for rice cultivation in order to improve the farmers' income. Most of the rice fields are in irrigation areas where water supply facilities are available because farmers grow rice in the dry season for sale but they plant in the wet season for their family consumption.
Farmers in Xayaboury province have been able to grow a rice surplus in recent years so they are keen to find ways to sell the extra.
Most of the provincial farmers grow their crops using the traditional methods they have stuck by for many years but they lack the ability to use the new techniques which would help them to grow bigger crops for sale and provide them with sustainable marketing methods for their produce.
Some areas also still face difficulties being accessed year-round through poor roads and their remote locations.
Provincial authorities believe that the rice promotion by the Chinese companies will be good for the provincial rice farmers as it will increase their incomes to help with their family development and contribute to poverty reduction.
The government, and in particular the provincial and district authorities, will play a central part in creating policies and coordinating the contractual arrangements between the farmers and companies, to ensure the implementation of this rice cultivation promotion is sustainable and effective.
The top crops providing a good income for farmers in Xayaboury province at the moment are sweetcorn and cassava.
vientiane times
