This afternoon, April 27, the Ministry of Industry and Trade issued a report No. 2976 to the Prime Minister to report the rice export situation and propose to abolish the mechanism of quota management in May 2020.
In the report, the Ministry of Industry and Trade proposed that from May 1, 2020, it will stop the mechanism of rice export management stipulated in Document No. 2827 / VPCP-KTTH of April 10, 2020 of the Government Office, permitting Rice export activities are back to normal, continuing to comply with the provisions of the Government's Decree No. 107/2018 / ND-CP of August 15, 2018, on rice export business.
However, in order to maintain and ensure food security and contribute to the effective implementation of the Government's rice export management objective, the Ministry of Industry and Trade proposes to continue strictly implementing the rice export only through the national border gate. (road, rail, sea, waterway, air).
389 National Steering Committee, Ministry of Finance directs Customs force, Ministry of Defense directs Border Force, Ministry of Public Security leads police force, Ministry of Industry and Trade directs Strengthening Market Management force closely inspect and supervise to prevent and strictly handle acts of smuggling rice across borders.
The Ministry of Industry and Trade continues to urge rice export traders to strictly comply with the provisions of Article 12 of Decree No. 107/2018 / ND-CP on regular maintenance of equivalent minimum circulation reserves. 5% of the amount of rice that traders have exported in the previous 6 months and pledged to immediately supply to the domestic market if required by the Government.
At the same time, it is recommended that the 20 largest rice exporters sign an agreement with at least one supermarket system to ensure a 5% circulation reserve is required.
In case a trader fails to maintain the circulation reserve level as prescribed or fails to fulfill commitments under the signed agreement, dishonest declaration, has been reminded but not remedied, allowed the Ministry of Industry and Trade revoke the certificate of eligibility for rice export business issued to that trader.
By April 26, 2020, the Portal of the General Department of Customs has actually exported 185,634.59 tons (accounting for 46.41% of the total quota of 400,000 tons), while 214,365,14 tons have been registered but not exported (accounting for 53.59%).
According to statistics of the Ministry of Finance, the amount of rice that has been brought into the port before March 24, 2020 but has not registered the declaration is 17,380.02 tons. The amount of rice that has been brought into the port from March 24, 2020 to the end of April 21, 2020 but has not yet registered the customs declaration, confirmed by the enterprise, the port business unit and the customs office. is 55,446.68 tons.
The Ministry of Agriculture and Rural Development reported to the Prime Minister on the plan for rice and vegetable production and consumption in 2020, with an estimated output of 43.5 million tons of paddy. Particularly in the Mekong Delta, the winter-spring crop has basically harvested 1.54 million hectares of cultivated crops, the output is estimated at 10.8 million tons of paddy.
Meanwhile, domestic demand forecast in 2020 (including reserves) is 29.96 million tons of paddy. Thus, after deducting consumer demand and stockpiles, the surplus paddy that can be exported is about 13.54 million tons, equivalent to about 6.5 to 6.7 million tons of rice.
“Through the monitoring of the Ministry of Industry and Trade, within the past 5 years, with the clearance capacity of international ports / border gates, Vietnam has never exported 700,000 tons of rice / month.
Thus, even in the case of May exporting 700,000 tons, Vietnam still has at least 600,000 tons in the first half of June, before supplementing the supply from the summer-autumn harvest. This is a basic difference between the supply and demand of rice compared to the end of March 2020.
Therefore, it can be affirmed that the country has achieved the goal of extending rice export schedule to ensure absolute national food security in the most complicated period of COVID-19 epidemic, ”the report of Ministry of Industry and Trade stated.
Planning and production situation
Production in 2020 is estimated at 43.5 million tons of rice. Inside:
– Winter-spring crop: the estimated output is 20.2 million tons of rice; in which the output of Mekong Delta is estimated at 10.8 million tons.
– Summer-Autumn crop: the estimated output is 11 million tons of rice; in which Mekong Delta is estimated at 8.7 million tons (so far 0.3 million hectares have been sowed, concentrated in areas not affected by drought and salinity).
– The Fall-Winter crop in the Mekong Delta provinces is estimated at 4.2 million tons of rice, the cultivated area is expected to 750,000 ha.
– Crop: estimated production of 8.2 million tons of paddy. The Northern Midlands and Mountains and Red River Delta regions are estimated at 4.7 million tons; The South Central Coast and Central Highlands are estimated at 1.4 million tons.
Particularly in the Mekong Delta region, the winter-spring crop to date has basically harvested 1.54 million hectares of cultivated, estimated production of 10.8 million tons of rice.
Consumer demand and reserves
In Document No. 2092 / BC-BNN-TT above, the Ministry of Agriculture and Rural Development forecasts domestic demand in 2020 (including reserves) of 29.96 million tons of rice, such as after: Consumption of people: 14.26 million tons; for processing: 7.5 million tons; service livestock: 3.4 million tons; used as breed, reserve breed: 1 million tons; Domestic reserves: 3.8 million tons.
Thus, after subtracting consumption and storage needs, the surplus rice that can be exported is about 13.54 million tons, equivalent to about 6.5 to 6.7 million tons of rice.
Particularly for the winter-spring crop, according to a report of the Ministry of Agriculture and Rural Development, after subtracting the need for reserves and consumption, the amount of commodity rice that can be exported is about 3 million tons.
Export situation
According to preliminary statistics from the General Department of Customs, rice exports in the first quarter of 2020 reached 1.52 million tons.
Rice quota allowed to be exported in April 2020 was 400,000 tons and supplemented with 100,000 tons of advanced advance under the direction of Deputy Prime Minister Trinh Dinh Dung at Notice No. 163 / TB-VPCP dated 21 April / 2020 of the Government Office.
However, until April 24, 2020 rice exports reached 185,634.59 tons. Based on the clearance capacity of the current international border gate system, the rice export in April is expected to range between 300,000 – 350,000 tons.
Thus, from the beginning of the year to the end of April, rice export is estimated to reach a maximum of 1.9 million tons.
With a total exportable rice volume of about 3.2 million tons (including the “overlapping” amount from 2019 to about 200,000 tons), after subtracting the estimated rice export volume in the first four months of 2020, The remaining amount of rice that can be exported is about 1.3 million tons.
According to Economy and Consumption
