Vietnam PM seeks to boost food security and rice supply

HANOI (Bloomberg): Prime Minister Pham Minh Chinh has ordered the government to ensure national food security under all circumstances, while boosting rice production and exports amid threats to global supply.

Chinh directed the agriculture and environment ministries to develop major planting areas and achieve the goal of producing more than 43 million tons of the grain "in years to come,” according to an Aug 5 directive that was posted on the government’s website on Sunday (Aug 6).

The premier instructed ministries and local governments to balance grain supplies for local use and exports to ensure food security, while lifting technical barriers to expand overseas sales. The government said on Aug 1 thnes, up about 10% from last year.

The prime minister’s directive came after top shipper India banned some shipments of the grain and Thailand urged farmers to reduce rice planting to save water after poor rainfalls.

New Delhi’s move raised concerns about the supply of food staples for billions of people globally and sent Asian benchmark rice prices to a three-year high.

Chinh said that Vietnamese traders in some areas had made massive purchases of paddies and rice, triggering a localised imbalance in supply and demand and pushing local grain prices to an unreasonable level. He ordered strict punishments on speculation, illegal profiteering and acts that trigger disruptions in the local market and impact Vietnam’s rice reputation in the world.

The trade ministry last week asked local authorities to stabilize local rice market to ensure domestic supply and stable prices through the 2024 Lunar New Year holiday. Minister Nguyen Hong Dien directed, in a Friday meeting, that rice exporters must strictly maintain minimum stockpiles levels as required by law while respecting signed contracts and taking cautious steps when dealing with new clients.