The thought of rice trading floor

Coffee which is one of Vietnam minor agricultural exports has a trading floor while rice is a key commodity why it is not set up a trading floor? That question has been haboured in the mind of Mr. Nguyen Van Dong, Director of Hau Giang Department of Agricultural and Rural Development since the provincial rice production has been consecutively grown for lately years, specially farmers’ rice is hardly sold out when it is profusely harvested.

* The initial thought

Mr. Dong says that the initial thought appeared when he and VFA along with ministries and sections concerned took a discussion about the activity content of Vietnam National Rice Festival -2009. A pilot plan is carried out to take the experience for an official trading floor.

Hau Giang is not a place of great rice production against with other provinces in the Mekong Delta, however, the provincial position which is a center of Hau river southern sub-region and Ca Mau peninsula has given a belief of rice attractiveness from neighbouring provinces’ farmers when a positive consuming channel is openned. Thanks to Xa No canal, the transport position, goods inter-regional trade of Hau Giang has been affirmed. In the other hand, A rice market (20 hectare area) shall be set up in Nhon Nghia A commune, Chau Thanh A dist., right at the entrance position of Xa No canal, contiguous to Can Tho city under a late agreement between the province and VINAFOOD 2. This shall be a firm foundation for the thought of “ The rice trading floor” to be magically changed into reality.

The pilot trading floor shall be appear on the baner at website: www.festivalluagao.vn of the Organizing Committee during the rice Festival.

* The trading floor design

Mr. Dong says that there should be a seminar, survey for the design of a good floor. Then the project through the central ministries, sections is made, and so is the relationship to the commercial banks…within the first-2009 Vietnam National Rice Festival, Hau Giang province has invited the entrepreneurs who are in rice trade to take part in their offers on internet.

Mr. Dong says that the current rice trading status is: farmers grow rice and sell it for mongers. Next the mongers sell the rice for rice mills, enterprises. And then the rice is sold for exporters or polished as purchase order. The result of this, farmers suffer the disadvantage. Although the price is governed by the state, a few farmers sell their products at the floor price as guidance. If the trading floor is set up, the public price channel can be made in accordance with the supply and demand movement of the rice market, and so can a fair trading platform in order to eliminate the price rigging.

* The man power for future trading floor.

According to Mr. Dong, after the festival, the coming trading floor shall count on the force of VINAFOOD 2 and the head office shall be established at Nhon Nghia A rice market if possible.

This rice market shall be not as same as Ba Bac rice market (Cai Be, Tien Giang) or Thanh Binh rice market (Dong Thap) or Thot Not rice industrial zone (Can Tho city). It shall be a perfectly closed rice market with functions: purchase, consignment, process, export…and services of technical consultancy, supply of seeds, funds (credit service); organization of schools, nursery schools, public health services ect. In generally, The market shall be the same as certain foreign markets where the farmers, entrepreneurs can come to make transaction conveniently and a great deal of employees are attracted to.

by Lap Chuong