Rice prices in the Mekong Delta have continuously decreased in recent days, with traders abandoning their deposits in some places and farmers struggling to find buyers.
On the contrary, at the 100-hectare field of Hung Loi Agricultural Cooperative (Long Duc commune, Long Phu district, Soc Trang province), members are busy harvesting, transporting, and selling to businesses at a price about 3,000 VND higher than the market price.
Having just finished harvesting more than 1 hectare of ST 25 rice, Mr. Huynh Van Chin (Long Duc commune, Long Phu district, Soc Trang province) immediately sold it to a business for 10,300 VND/kg. After deducting all expenses, his family earned a profit of about 40 million VND/ha this crop.
Mr. Chin said that since joining forces with the company, even though prices fluctuate, they still buy, and farmers are not afraid of not being able to sell their rice. So even at a time when rice prices are plummeting like now, farmers like him are not affected.
“Once we have an alliance, we must keep our word. If the price goes up, we will sell to the business at the contracted price. And if the price goes down, the business will buy at the previously committed price,” said Mr. Chin.
Mr. Chin informed that in the 2023 Winter-Spring crop, when rice prices were "feverish", 200 - 500 VND/kg higher than the price of the purchasing enterprise, along with many offers from brokers, he still sold to the enterprise as committed.
"We have been doing business with the company for many years. Maintaining this relationship is not easy, so we cannot break the contract just because of a little higher profit. Doing so will lose our reputation. It will be difficult to cooperate with anyone in the future," Mr. Chin added.
Mr. Truong Van Hung - Director of Hung Loi Agricultural Cooperative - said that in the 2024 - 2025 Winter-Spring rice crop, the Cooperative will supply Ong Tho Rice Joint Stock Company with 100 hectares of ST25 rice at a price of 10,300 VND/kg. This price is purchased by the enterprise at a higher price than the market price, so everyone is excited (the price of ST25 rice that farmers working in the fields next to the Cooperative sell to traders is 7,000 - 8,000 VND/kg).
“Each crop season, the Board of Directors of the Cooperative thoroughly instills in its members the spirit that “trust” must be put first. When the rice price is high, the purchasing unit will support a part, and when the price is low, the Cooperative must also accompany and share difficulties with the enterprise. It is the motto of “harmonious profits, shared risks” that has never happened in the Cooperative,” said Mr. Hung.
Mr. Hung said that many farmers who have not yet joined the association with enterprises have requested to join the association in the next rice crop to avoid the current situation of good harvest but low prices.
According to the update from the Department of Agriculture and Rural Development of An Giang province, the current price of IR 50404 rice fluctuates at 7,200 - 7,300 VND/kg; OM 5451 rice fluctuates at 7,600 - 7,800 VND/kg; OM 18 and Dai Thom 8 rice fluctuates at 7,800 - 8,000 VND/kg; OM 380 rice fluctuates at 6,600 - 6,700 VND/kg... In the provinces of Soc Trang, Bac Lieu, Dong Thap, Kien Giang, rice transactions have stagnated, in some places traders have abandoned their deposits, farmers have offered to sell at low prices but there are still few or no buyers.
