By Prensa Latina
Hanoi : Vietnam halted the signing of rice export contracts in 2008 in keeping with a governmental decision known here on Friday based on the impact of the cereal crisis in Asia.
The concern for the reduction of this grain in the continent gained momentum after an unprecedented winter season in this Indochina country, second world exporter, that devastated about 150,000 hectares of rice plantations.
Official sources explained the measure after the imperative need of providing domestic supply.
Vietnam had signed contracts to sell about 4 million tons of rice so far this year, 1.5 million to Philippines.
The renunciation of export revenues will sensibly affect the income of companies involved in the industry which have increased by 43 percent in the international market, a hike of 70 dollars per ton so far this week.
China and India, among the biggest rice producing countries, have already suspended their exports facing a shortage that threatens to affect about 2.5 billion people in Asia.