The policy of stockpiling rice... is lagging behind.

Nearly a month after the Prime Minister's Directive No. 21 on managing rice production and consumption, the market still shows no signs of improvement. In the Mekong Delta, traders are only buying winter-spring rice at 5,000-5,500 VND/kg, a decrease of 2,200-2,700 VND compared to the beginning of the season. At this price, farmers who rent land to grow rice will certainly suffer losses.

Meanwhile, about 50% of the nearly 1.5 million hectares of winter-spring rice have been harvested, while the rest is ripening but harvesting is being done slowly due to a lack of buyers.

Given this situation, the Ministry of Agriculture and Environment and the provinces in the Mekong Delta have determined that providing credit support for businesses to purchase rice for temporary storage is the "optimal option." This is a familiar solution, but it is insufficient and already... too late. When the winter-spring crop enters its peak harvest season, prices plummet, and only then is temporary storage activated, the policy has already lagged behind the market. The role of price regulation is almost gone; the only thing achieved is reassuring public sentiment.

Moreover, not all businesses have easy access to preferential loans. Banks still need to ensure credit safety, while temporary rice storage carries all sorts of risks: prices continue to fall, exports are uncertain, and collateral is limited. For small and medium-sized enterprises (SMEs) – the main force in rice procurement – ​​the capital barrier is a high wall that is difficult to overcome. Even if they can borrow, the cost of interest, warehousing, losses, plus uncertain output, makes many businesses choose to stay out. The result: policies exist, but businesses and farmers remain hesitant.

This reality shows that relying solely on temporary stockpiling will only perpetuate the vicious cycle of "bumper harvests leading to price drops." The problem isn't a lack of policy, but rather a policy response that only occurs after the damage has already happened. What's needed is a different approach: proactive action from the beginning of the season, rather than rescue efforts at the end. The focus should be on integrating businesses deeper into the production chain – from placing orders and supplying materials to guaranteeing product purchase under contracts signed before planting.

When price risks are shared from the outset, farmers no longer have to bear the burden alone each harvest season. In An Giang and Dong Thap provinces, several models of linkages following this approach have shown that farmers' selling prices are significantly more stable compared to selling through middlemen – this is a direction that needs to be replicated, without exception.

Simultaneously, the capacity to forecast export markets must be substantially improved. Information on demand, prices, and technical barriers from major markets needs to reach localities, businesses, and farmers early enough to adjust production plans – not to be read only after the rice has already been piled high in the yards.

Regarding credit policy, instead of applying it indiscriminately, support mechanisms should be designed to be linked to specific supply chains with clear output consumption contracts. Capital flowing into stable production models will create real effectiveness, rather than merely compensating for temporary losses.

In the long term, the infrastructure problem is unavoidable. Currently, the warehousing, processing, and logistics systems in the Mekong Delta are still weak, causing consumption pressure to be concentrated in each season instead of being evenly distributed. Diversifying export markets and reducing dependence on a few traditional markets is also a key factor in ensuring the sustainable value of rice.

Falling rice prices are nothing new, but the response can't remain outdated. It's time to shift completely from a "rescue" mindset to a market reorganization – so that farmers no longer have to worry every harvest season.

TUAN VU

Source: https://www.sggp.org.vn/chinh-sach-tam-tru-lua-cham-nhip-post847217.html