Rice traders to expand sources
Rice traders to expand sources
Rice exporters must build new areas for sourcing raw material in direct proportion to their export volumes, the Ministry of Industry and Trade said in a decree issued last week.
The decree talks about a roadmap for the development of areas from where raw material can be sourced, as well links rice production and consumption between farmers and traders for the 2015 to 2020 period, which is aimed at restructuring the farming sector, enhancing rice quality and raising rice exporters' competitiveness.
Accordingly, rice exporters can develop their raw material sources in three ways, including building large-scale paddy fields, signing contracts with farmers or developing their own raw material areas.
Rice traders with an export volume of below 50,000 tonnes per year must develop a minimum raw material area of 500ha during the first year and widen this area by 300ha each in the following years.
For those with an export volume of 50,000 to 100,000 tonnes per year and 100,000 to 200,000 tonnes per year, the minimum raw material areas needed during the first year will be 800ha, 1,200ha and 2,000ha, respectively.
The Ministry of Industry and Trade is aiming to encourage traders to develop stable raw material sources for major crops harvested during the year.
Support and incentives, such as agricultural insurance premiums, preferential loans will be provided to rice traders, who participate in developing new raw material sources.
The regulation will come into effect from March 1, 2015.
