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Illustration. Source: Internet

Excess 6.5-6.7 million tonnes of rice for export

The Ministry of Industry and Trade has reported No. 2237/ BCT-XNK to the Prime Minister on results of the review and evaluation of the situation of rice production and inventories in the country and the proposal for rice export in the context of the epidemic and drought, as well as saline intrusion.

The report stated production in 2020 is estimated at 43.5 million tonnes of paddy. Regarding consumption and storage needs, the Ministry of Agriculture and Rural Development forecasts domestic demand in 2020 including reserves of 29.96 million tonnes of paddy.

Specifically, consumption of people is 14.26 million tonnes; processing service is 7.5 million tonnes; serving livestock 3.4 million tonnes; used as seed and reserve seed with 1 million tonnes; domestic reserves of 3.8 million tonnes.

Thus, the remaining paddy for export is about 13.5 million tonnes of paddy, equivalent to 6.5 - 6.7 million tonnes of rice.

Regarding the review results, the Ministry of Industry and Trade synthesises the comments of representatives of provinces and cities of the Mekong Delta, Ho Chi Minh City, the Vietnam Food Association (VFA) and the 20 largest Vietnamese exporters. It found that the basic data are true with statistics of MARD.

Regarding exports, data provided by the General Department of Customs is correct. Specifically, as of March 15, rice exports reached about 1.3 million tonnes. On average, in the first 15 days of March, exporting was about 25,000 tonnes/day. If exports remain at the same pace as the first 15 days of March, the first quarter of 2020 will export about 1.7 million tonnes, up nearly 21% over the same period of 2019.

VFA currently has 92 members, accounting for about 75% of the country's exports. According to the VFA's report, as of March 27, the total number of signed and undelivered contracts was nearly 1.6 million tonnes of rice. In particular, to be delivered from now until May 31 is nearly 1.4 million tonnes. The amount of rice currently in stock of member enterprises (60/92 members) is 1.65 million tonnes.

Thus, only members of the VFA, if strictly complying with the direction of "not signing new contracts" of the Prime Minister, the surplus of rice on May 31st is about 266,000 tonnes.

Including enterprises outside the association that send reports at the request of the Ministry of Industry and Trade, the total number of signed contracts but not yet delivered is nearly 1.67 million tonnes of rice. The amount of stock available in the business is more than 1.7 million tonnes of rice and 144,000 tonnes of rice (equivalent to 75,000 tonnes of rice).

Export but strictly controlled

Based on review results and opinions of Mekong Delta provinces, enterprises, interdisciplinary inspection teams chaired by the Ministry of Industry and Trade will report to the Prime Minister on the plan of rice export management, to propose for permission to continue exporting rice but to strictly control the amount of exports each month, firstly in April and May.

Food security needs in April and May will be met 300,000 tonnes by the General Department of State Reserve and keep an additional 400,000 tonnes of rice for backup. Thus, the amount of exported rice retained for domestic demand in two months is 700,000 tonnes.

Regarding exports, estimated export volume of rice in April and May 2020 is about 800,000 tonnes. In the immediate future in April, it is allowed to export 400,000 tons. In the last week of April, based on disease developments and the reports of ministries and branches, the Prime Minister will consider and decide the direction of rice exports in May.

Regarding the management of quantities permitted for export, the Ministry of Industry and Trade's report states the General Department of Customs is responsible for managing the amount of 400,000 tonnes of rice allowed to be exported in April through cumulative and subtracted quantities according to customs declarations.

The management principle is as follows, registration of the previous declaration will be exported first, and the number of opening declarations is deducted from the total amount permitted for export in April. In case of not using 15-day declarations or quantity if actual export volume is less than the amount opened according to the declaration, the balance shall be added back to the permitted export amount in April.

The total number of export declaration registrations and the actual total export volume are displayed in real time on a website established by the General Department of Customs or on the national public service so all businesses and citizens can follow.

To support the plan, contributing to ensuring the goal of managing rice exports in the current period, the Inter-ministerial Examination Team unanimously proposed implementing several support measures such as the Ministry of Finance to continue only the director of the General Department of State Reserve urgently purchases a sufficient quantity of food in reserve according to the plan.

At the same time, the Inspection Team proposes to allow rice exports only through international border gates (road, rail, sea, air, and waterway) where there is sufficient network equipment for the General Department of Customs to monitor in real time.

The Ministry of Industry and Trade shall direct the General Department of Market Management and the Ministry of Defence to direct forces to intensify inspection and supervision to prevent and strictly handle cross-border rice smuggling.

In addition, the inspection team proposed the 20 largest rice exporters must sign an agreement with at least one supermarket system to ensure a 5% circulation reserve when required. In case of failure to implement the agreement and having been reminded but not remedied, the Ministry of Industry and Trade is entitled to revoke the certificate of eligibility for rice exporting.

In addition, the Government has a resolution that allows the Ministry of Industry and Trade to withdraw the export licenses issued to rice exporting enterprises that fail to observe the periodic reporting regime and declare dishonestly to the ministry.