Although Việt Nam holds huge potential to boost rice export in 2024 as the world is forecast to face a shortage of about five million tonnes of the grain, limitations in linkage chain must be tackled for the industry to move forward.

 

According to Deputy Minister of Agriculture and Rural Development Phùng Đức Tiến, a stronger linkage chain will enable risk sharing and harmonised benefits, helping the rice sector develop sustainably.

 

Production linkage has an important role to play in agricultural production since it will help prevent the situation that bumper crops drag down rice prices.

 

Since the rice linkage remains weak, the agricultural ministry has penned a project to develop rice production chain, with the participation of 14 provinces across the nation, Tiến said, adding hi-tech farming models deployed in the chain so as to improve the competitiveness of the sector, making it better integrate in the global supply chain.

 

The US Department of Agriculture forecast that the global rice supply is no longer abundant in 2024 when rice output of India, accounting for more than 40 per cent of world rice export, would decline by around four million tonnes to 132 million tonnes.

 

Other major exporters such as the Philippines, Indonesia, Thailand and Cambodia are also predicted to see dropping rice output due to the impacts of El Nino and climate change.

 

The Ministry of Industry and Trade said that Việt Nam will enjoy a robust year of rice export due to great demand from Indonesia, the Philippines, Malaysia, China and several African countries for fear of El Nino which could linger till mid-2024.

 

Right in January, Indonesia opened a tender to import 500,000 tonnes of rice to bolster the country’s food reserve, with Vietnamese companies winning contracts to supply nearly 400,000 tonnes. This signals a positive outlook for a successful year for the rice sector.

 

Statistics from the agricultural industry showed that Việt Nam exported 1.02 million tonnes of rice for US$708 million in the first two months of this year, up 49.8 per cent in value year-on-year.

 

The country aims to ship some 6.5 million tonnes of rice abroad this year. — VNS