Vietnam could review its rice production and allow exporters to sign new contracts in the fourth quarter, a government minister was quoted on Tuesday as saying.
"If the summer-autumn crop output and the third crop planting are smooth and there's no major impact by natural disasters, we could review to ease the export target in the fourth quarter," Deputy Agriculture Minister Dieppe Kinh Tan was quoted by the Saigon Gail Phone newspaper as saying. In July the government banned the signing of rice export contracts to ensure national food security.
Tan estimated Vietnam's rice stocks at 1 million tonnes. "With the available quantity it is possible to guarantee the national food security for 2007," he said in an interview with the newspaper. Tan said the temporary export halt was necessary because a storm and tropical depression that triggered floods last month had damaged rice production in Central Provinces and the Central Highlands.
Vietnam was forecast to produce 35.5 million tonnes of paddy in 2007, while domestic demand would be at least 28.5 million tonnes, leaving 7 million tonnes available for export, he said.
The demand included 20.2 million tonnes for eating, 7.2 million to 7.5 million tonnes as feed in the husbandry sector and 1.1 million to 1.2 million tonnes of good grain for seedlings. The 7 million tonnes of paddy, or unhooked rice, meant 4 million tonnes of husked grain would be exportable this year. Vietnam has initially targeted rice exports of 4.5 million tonnes this year, after shipping 4.75 million tonnes last year.
The country is capable of exporting 5 million tonnes of rice per year, industry experts have said. "If adding the carryover stock from 2006 it is possible to export more than 4 million tonnes with a condition of no major impact from natural disasters and diseases," Tan said.
Storms and typhoons often strike Vietnam from August to October. State forecasters said six storms could hit this year. January to August's rice exports were estimated to fall 4.8 percent from a year to 3.59 million tonnes, the government said.
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