Vietnam, the world's second largest rice exporter, has imposed a 3.8 million tonne limit on 2005 rice exports to ensure domestic supplies, but the curb could be lifted later this year, industry officials said on Thursday. A government directive issued on Monday allowed rice exporters to sign contracts until their total committed volume reached 3.8 million tonnes, a Vietnam Food Association official told Reuters.
Vietnam exported 4.06 million tonnes of rice last year, up 6.5 percent from 2003, and is a key rice supplier to the Philippines, the Middle East and Africa.
"This policy, as done every year, will be reviewed in the fourth quarter," said the official at the Ho Chi Minh City-based office of the body which overseas rice production and trading.
The directive did not specify a reason for imposing the cap, but traders said a prolonged drought this year would hurt the rice crop.
However, the most drought-stricken areas are mainly along the central coast, which is not a key rice-producing region.
In the Mekong Delta rice basket the wet season arrived in mid-May. Industry experts said rice would have to be supplied to drought-hit areas from the Delta region, which produces about half Vietnam's rice, but that overall supplies should not be affected.
The Trade Ministry has estimated rice exports this year at 3.9-4.0 million tonnes, while the Agriculture Ministry's target is 3.8-4.0 million tonnes.
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