MoIT proposes two solutions to resolve rice congestion in Mekong Delta

The office of the Ministry of Industry and Trade (MoIT), on the afternoon of August 16, informed that its leader had signed an official dispatch to the Prime Minister, reporting on the consumption of paddy and commodity rice in the context of the Covid-19 pandemic in the South.

According to the report, in the first seven months of this year, although the average export price rose by US$53.5 per ton, compared to the same period last year, the value of Vietnamese rice export turnover dropped by 3.1 percent because the export volume fell by 12.69 percent.

Although according to this year’s plan, Vietnam will export about 6 million-6.2 million tons of rice of all kinds, worth more than $3.32 trillion, at present, most traders hesitate to sign new export contracts because of congestion in circulation, receipt, and delivery at seaports. The difference between the price at the time of offering and the actual freight at the time of delivery is too large, putting both traders and customers at great risk.

If this situation keeps going, it will affect export turnover and pose a risk of losing traditional markets, such as the Philippines, China, and Malaysia to other competitors in the region, namely Thailand and India, the official dispatch of the MoIT stated.

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