Home Economy Vietnam to buy 500,000 tonnes of rice to stabilize price

Vietnam to buy 500,000 tonnes of rice to stabilize price

By NNN-Bernama,

Hanoi : Vietnamese Prime Minister Nguyen Tan Dung decided to ask the Vietnam Southern Food Corporation to buy 500,000 tonnes of rice from now to late November, so as to stabilize domestic rice price.

The company will buy rice at a price which allows local growers to have profits of at least 30 percent, China’s Xinhua news agency reported Wednesday, citing a local daily.

Earlier, the Vietnam Food Association asked its members to buy 500,000 tons of rice in September at the price of 3,800 Vietnamese dong (21 U.S. cents) a kilogram to stabilize price, according to the newspaper.

In the summer-autumn rice crop of 2009, the Mekong Delta provinces produced about two million tons of rice, said Ministry of Agriculture and Rural Development.

Vietnam exported about 4.7 million tonnes of rice in the first eight months of this year, bringing home some US$2.14 billion, up 43 percent year-on-year in volume, down 1.4 percent year-on- year in value, according to the General Statistic Office of Vietnam.