VFA calls on businesses to help support rice purchases from farmers

VFA calls on businesses to help support rice purchases from farmers

The association particularly urged businesses to buy fragrant and high-quality varieties, such as DT8 and OM18, at prices of VNĐ7,000 (US$0.27) per kilogramme or higher.

A farmer harvesting rice. — VNA/VNS Photo

The Vietnam Food Association (VFA) has called on member enterprises and rice export traders to actively purchase paddy from farmers.

The association particularly urged businesses to buy fragrant and high-quality varieties, such as DT8 and OM18, at prices of VNĐ7,000 (US$0.27) per kilogramme or higher.

In an open letter to member enterprises and rice export traders, VFA Chairman Đỗ Hà Nam urged businesses to demonstrate their commitment by actively purchasing paddy from farmers and joining efforts to support paddy sales and stabilise the rice market.

According to the VFA, Việt Nam’s rice production, trading and exports have faced numerous difficulties recently. Conflicts and instability in various parts of the world continue to disrupt global supply chains, logistics and trade.

Meanwhile, many rice-importing countries have adjusted their policies toward greater protectionism, prioritising food security and tightening import controls, significantly affecting rice exports from Vietnamese businesses.

Alongside these challenges, rice farmers are also under mounting pressure, as input costs remain high while paddy purchase prices have tended to decline during the harvest season.

Without joint efforts from the business community, the VFA said that farmers’ incomes and livelihoods would be affected, in turn undermining the sustainable development of Việt Nam’s rice industry.

The VFA also called on rice exporters to prioritise negotiating, signing and fulfilling export contracts for fragrant rice at prices of at least $500 per tonne, in line with product quality and market developments.

According to the VFA, the move would help increase the value of Vietnamese rice while ensuring a balanced distribution of benefits among farmers, businesses and the country.

The VFA expressed confidence that, with their tradition of solidarity, responsibility and commitment to supporting the business community, member enterprises and rice export traders would join efforts to stabilise the market, support paddy consumption for farmers, safeguard Việt Nam’s reputation and enhance the value of Vietnamese rice in international markets.

Việt Nam’s rice exports were estimated at 505,000 tonnes last month, worth $252.8 million, according to the Ministry of Agriculture and Environment.

In the first seven months of the year, rice exports totalled 5.5 million tonnes, valued at $2.64 billion, up 0.5 per cent in volume but down 6.7 per cent in value year-on-year.

The average export price of rice during the January-July period was estimated at $476.6 per tonne, down 7.1 per cent from the same period last year.

The Philippines remained Việt Nam’s largest rice export market, accounting for 44.7 per cent of the market share. China and Ghana ranked second and third, with shares of 19.1 per cent and 9.6 per cent, respectively. 

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