As a result of the worsening global economy, countries around the world have been stocking more food, including rice, and this is an opportunity for local exporters to increase their shipments, the ministry said on Friday, citing the Food and Agriculture Organization (FAO).

But FAO also said that with output increasing this year, competition on the global rice market would be really harsh. In its Food Outlook report released in November, FAO said good crops would boost world rice inventories in 2009 to 115.4 million tons, the highest since 2002.

Vietnam, the world’s second-biggest rice exporter, may ship five million tons of the grain this year, the Information Center for Agriculture and Rural Development said.

Deputy Minister of Industry and Trade Nguyen Thanh Bien said the ministry would try to boost trade promotion activites for rice exports this year, as it would be “a year for buyers.”

He also asked the Vietnam Food Association to improve its market forecasting in order to help farmers know how much they should grow and which varieties will sell better.

The main goal for the association this year is to purchase all the rice from farmers at the best prices possible.

Vietnam still has stockpiles of about 900,000 tons of rice in the Mekong delta provinces, the Thoi Bao Kinh Te Vietnam (Vietnam Economic Times) reports.

The price of 5 percent broken rice, the highest grade of rice grown in Vietnam is now $400-500 per ton, compared with more than $1,000 in April last year.

The association has also proposed that the government not impose quotas for rice exports on businesses as long as the nation’s target is not exceeded.

According to the association, Vietnam shipped 4.7 million tons of rice last year. The country plans to export at least 4 million tons of the grain this year, as requested by Prime Minister Nguyen Tan Dung on December 29.

Vietnam’s companies will have to export more than 400,000 tons of the grain undelivered from orders signed last year, Thoi Bao Kinh Te Vietnam said, citing the Vietnam Food Association.

Source: Agencies