Strict new conditions for rice exporters that take effect on October 1
are set to result in 50 enterprises losing export licences, according to
the Ministry of Industry and Trade's Import and Export Department.
Decree 109 on rice export businesses will require enterprises to meet
criteria such as having a warehouse with capacity of at least 5,000
tonnes of rice in stock, at lease one rice husking workshop with a
minimum capacity of processing 10 tonnes of rice per hour and export
volume of at least 10,000 tonnes of rice each year.
Import and Export Department reported the nation has more than 150 rice
exporters currently, with either one-year or five-year export licences.
With 50 out of the 150 rice exporters expected to fail to meet the new
criteria, the ministry has asked the Vietnam Food Association (VFA),
rice export management teams and provincial authorities to ensure
solutions for enterprises that lose export licences.
Truong Thanh Phong, VFA chairman, said the association asked firms not
to race to build new storehouses as this may result in unused facilities
and be a iste of money.
Rice trading firms do not
necessarily have to export rice directly and instead can sell their rice
to export firms, Phong said. "That will still ensure a high turnover,"
Nguyen Thanh Bien, deputy minister of industry
and trade, said balancing supply and demand in rice exports is an
important factor in the success of these enterprises.
they should not produce too much rice and build many storehouses only
to be left with this stock if they are unable to export it," he said.
The VFA and provinces should review the number of storehouses and rice
husking factories that were built since Decree 109 is publicised in
January 1, 2011, Bien said.
The ministry asked other
ministries and provinces to submit feedback on the new regulations for
rice exporters during the next five years, Bien said.
Ministry of Agriculture and Rural Development reported rice exports fell
by both volume and export value, seeing a year-on-year decline of 2 per
cent in volume to 4.6 million tonnes and a decline of 8.7 per cent in
value to 2.1 billion USD. The average export price also dropped by 6.6
per cent to 458 USD per tonne.
Phong said that despite
difficulties, Vietnam is likely to achieve its yearly target of
exporting 7 million tonnes of rice if the country focuses on tapping its
strength and retains its existing markets.
the country should boost its export of high-quality products, Phong
said, adding that China has been importing all high-quality and
fragrant rice found in the domestic market.
recommended that Vietnam focus on higher quality rice, as cheap
Vietnamese rice is failing to compete with low-priced rice from India