Vietnam makes stocks for rice prices
08 April 20141 min reading
Vietnam began rice stockpiling in order to prevent drop in rice prices.
In Vietnam as one of the world’s leading rice producers, the government has taken action in order to prevent price decreases as the rice harvest has reached to the highest level. The government approved stockpiling of about 2 million tons of paddy rice by private companies for about four months to avoid a price drop.
According to local sources; the State Bank of Vietnam (SBV) will provide up to 8 trillion dong ($376 million) as loans with a 7% annual rate of interest to private companies to buy paddy from March 15 to the end of April, 2014. However, it remains doubtful whether the stockpiling program will succeed in preventing losses for farmers.
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