Eight electric pumping stations are at risk of ceasing operation.
According to Mr. Tran Cong Danh, Director of Nhon Hau Agricultural Cooperative (An Nhon ward, Gia Lai province), in the 2025-2026 winter-spring crop season, the cooperative will sow 350 hectares of rice and about 200 hectares of other crops. The entire agricultural land area of the cooperative uses water from 8 electric pumping stations with 21 pumps.
Accordingly, the two pumping stations, Bac Nhan Thap and Dong Giua, share one electricity meter; the Thanh Danh and Tam Bich pumping stations share one electricity meter; and the remaining four pumping stations, Thi Lua, Ben Tranh, Ngai Chanh, and Ben Go, each use a separate electricity meter. This means the Nhon Hau Agricultural Cooperative has to sign six electricity purchase and sale contracts with the An Nhon Electricity Management Team (a unit under the Gia Lai Power Company).
“The contract the cooperative signed with the electricity sector on July 1, 2021, was for 5 years, expiring on June 30 of this year. However, on January 16, the An Nhon Electricity Management Team sent a new contract for the cooperative to sign. Seeing the clause in the contract stating, 'If the cooperative fails to pay the electricity bill within 9 days of receiving the payment notice, the electricity company will cut off the power,' I was extremely puzzled.”
According to Article 63 of the Electricity Law, regarding the payment of electricity for irrigation, it stipulates that "The payment deadline for electricity used by enterprises operating irrigation works to irrigate rice, vegetables, crops, and intercropped industrial plants in the area shall be agreed upon by both parties to the electricity purchase and sale agreement, but shall not exceed 120 days from the date of receiving the electricity payment notice." Therefore, I haven't signed the contract yet, and the An Nhon Electricity Management Team officer threatened to cut off the electricity supply if I didn't sign, so I'm very worried," Mr. Danh said anxiously.
Each time, the Nhon Hau Agricultural Cooperative signs 6 electricity purchase and sale contracts with the An Nhon Electricity Management Team. Photo: V.D.T.
According to Mr. Danh, the earliest sown rice crop of Nhon Hau Agricultural Cooperative is only 1 month and 6 days old, while the latest sown crop is only 10 days old. The rice plants need water to tiller; if they lack water, they will wither, affecting their growth and development, and causing a loss of yield. Especially during the winter-spring season, rats often cause damage. If the electricity supply is cut off, the pumping stations will not operate, the fields will dry out, creating favorable conditions for rats to breed and damage the rice crop.
Electricity bill obsession
Mr. Tran Cong Danh, Director of Nhon Hau Agricultural Cooperative, further shared: On average, the cooperative has to pay about 200 million VND in electricity bills each month, which is an overwhelming burden for an agricultural cooperative. In 2025, Nhon Hau Agricultural Cooperative will have to pay 1.2 billion VND in electricity bills, while the irrigation fee subsidy is only over 600 million VND, so the cooperative has to mobilize farmers to contribute additional funds for on-field irrigation to cover the electricity costs.
According to Mr. Danh, at the end of each year, the Nhon Hau Agricultural Cooperative holds a year-end review meeting, preparing for the annual general meeting in March of the following year. During the meeting, the cooperative reports on its operations, including the operation of the pumping station system serving agricultural irrigation and the situation regarding the shortfall in irrigation fee subsidies for electricity costs. If the general meeting agrees to mobilize farmers to contribute additional funds for on-field irrigation to cover electricity costs, it will be implemented; if not, the cooperative will handle it itself.
“Farmers don’t have money readily available. We have to wait until the harvest is over and the produce is sold before we can pay the irrigation fees, which can take up to 3-4 months. During months when the cooperative fund runs out of money, we have to borrow the land deeds of our fellow cooperative members to mortgage with the bank to borrow money to pay the electricity bill. If we’re only short a few tens of millions of dong a month, we borrow 5-10 million dong from each of our colleagues to contribute to the payment, otherwise our electricity will be cut off,” Mr. Danh shared.
Electricity bill pressure is a major concern for Nhon Hau Agricultural Cooperative. Photo: V.D.T.
According to Mr. Danh, the current irrigation subsidy rate is outdated, having been in effect for 14 years, while electricity prices continue to rise. While in 2012 the electricity price was just over 900 VND/kWh, the power company now sells electricity to agricultural production using a three-tiered meter system. The normal hourly rate is 1,987 VND/kWh, peak hours are nearly double at 3,640 VND/kWh, and off-peak hours are 1,300 VND/kWh. Therefore, the annual irrigation subsidy for the cooperative is insufficient to cover the electricity costs for operating the pumping stations.
“Now, cooperatives only get paid when they make a profit, while irrigation is a public service. Cooperatives provide this service as a political duty, and they must serve farmers at all costs. Faced with the reality that the irrigation fee subsidies are insufficient to cover electricity bills, and with the electricity sector putting pressure on us regarding payment deadlines that violate the spirit of the Electricity Law, many members have become discouraged and resigned. Now, the Cooperative's Board of Directors only has 5 people left,” shared Mr. Tran Cong Danh, Director of Nhon Hau Agricultural Cooperative.
Source: https://nongnghiepmoitruong.vn/350ha-lua-nguy-co-khat-nuoc-d794382.html
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