Economy

Committee discusses agricultural restructuring in Mekong Delta   Nhan Dan – The Southwestern Steering Committee, the Ministries of Agriculture and Rural Development and Industry and Trade, and the State Bank of Vietnam co-organised a conference held yesterday in the Mekong Delta city of Can Tho to discuss solutions to promote regional production and consumption of rice and seafood in 2013. Since the beginning of the year, national rice and aquaculture production continue to grow, according to the Ministry of Agriculture and Rural Development. Consumption of rice and seafood, particularly basa fish and shrimp, were down, however, as exports of those commodities continued their downward trend in 2012. As of the end of June 2013, Vietnam has exported 3.48 million tonnes of rice, yielding revenue of US$1.5 billion; up 2.5% in volume but down more than 2% in value over the same period last year. Basa fish exports during the first five months of this year were estimated at US$670 million, down 6.7% year on year. The main reasons arise from a surplus on the global food production market and high competitiveness from other countries. According to the US Department of Agriculture and the Food and Agriculture Organisation of the United Nations (FAO), a 2% increase in global rice production, along with high inventories in some rice exporting countries, makes it harder for rice traders and farmers to make money. While aquacultural businesses face high inventories, basa fish exports are diminished by trade barriers and anti-dumping taxes. Addressing the conference, Deputy Prime Minister Vu Van Ninh urged related ministries, agencies and local authorities to facilitate agricultural and rural development policies. He stressed the promotion of agricultural restructuring to effectively push up the production and consumption of rice and fishery products in the region and throughout the country as a whole. He requested the purchase of one million tonnes of rice for temporary storage along with increased credit support for agricultural production for short term relief, as well as long term implementation of the Government’s decision to restructure the agricultural sector in accordance to market supply and demand. Agricultural production should be reorganised based on the principle of the value chain concept, the Deputy PM said, with focus on strengthening linkages between farmers and enterprises, and promoting the application of science and technology in agriculture and aquaculture to increase productivity and quality of agricultural products with an eye towards developing prestigious brands for each item. He added that the Government is considering the establishment of assistance funds to support agricultural production through subsidies to farmers during the current difficult times. NhandanOnline