VFA regulating rice exports – illogical: NA deputy
You have said that it is unreasonable to assign the Vietnam Food Association (VFA) to manage rice exports. Could you please tell us why?
VFA is a social-professional organisation, but it is undertaking the job of state management. Meanwhile, the way VFA has been managing rice exports lacks transparency, attaching great importance to the benefits of businesses, while ignoring the benefits of farmers.
In fact, the income of farmers is just equal to the income of a household near the poverty line. Farmers get profit of only 1,000-2,000 dong for every kilogramme of rice, or 15-20 million dong per hectare. Meanwhile, brokers who trade farmers’ rice can make 5-6 times more profit than farmers. As such, farmers have been put at a disadvantage.
How does the farmers’ disadvantage relate to rice export management?
Provinces which have high rice outputs like Kien Giang are allowed to export little rice while localities with lower rice outputs can export a lot of rice. This is like forcing farmers to sell rice away. I think that VFA has been managing rice exports in the wrong way.
Could you please tell us more about that?
When the world’s price was high at $470/tonne and domestic paddies were profuse, VFA did not allow rice exports because of fear about food security. In May 2009, when VFA asked to increase exports, the rice price had decreased to $380/tonne, which means that farmers and exporters lost billions of dong.
Do you mean that ministries like industry of trade, and agriculture, which have trade counselors in foreign countries and market forecast agencies, should be regulating exports, and management should be taken away from VFA, which does not have updated information?
Yes, I do. I have sent queries to the Minister of Industry and Trade and asked for a transfer of rice export management to the ministry. Meanwhile, VFA should fulfill its function as a consultant to help better manage rice exports.
You have said that you have sent queries about rice export management to relevant agencies. Who did you send queries to?
To the ministers of industry and trade, and home affairs. If the two ministers do not give satisfactory answers, I will question the prime minister.
Minister of Agriculture Cao Duc Phat at the previous session claimed responsibility for the order to suspend rice exports, causing big losses for farmers and businesses.
I really respect Phat’s behaviour. In fact, this should have been done by the Ministry of Industry and Trade, and VFA.
What do you think about the agriculture development stimulus package?
The package has been carried out since May 1. Farmers get 4 percent interest on loans to purchase agricultural machines.
I think that the interest rate subsidy programme should be extended to five years instead of two years.
The loans are given provided that farmers purchase domestically-made products. However, the problem is that domestic producers do not have enough products to provide, while sale prices are high. Meanwhile, China-made machines are very cheap.
