A Change of Guard

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Friday 8 January 2010

Imported rice brands dominate markets in the Mekong Delta

07-01-2010

HCM CITY — Though Viet Nam has to open up its rice market in 2011, the market is already showing clear signs of being flooded by imported grain.

Foreign rice, especially from Thailand, Cambodia, and Taiwan, is being sold at most retail and wholesale markets in HCM City and neighbouring provinces.

Tran Thi Bach Huong, owner of a rice stall in District 1’s Tan Dinh Market, said: "Every day I sell at least 100 kilogrammes of imported rice and only 50 kilogrammes of local rice."

Thai and Cambodian rice are the most favoured by consumers, Huong added.

"In recent years my family has used Thai or Japanese rice since these varieties are the best with good flavour," Nguyen Thi Kim Dinh, a teacher at the HCM City Economics University, said.

Analysts said foreign varieties are popular not only in urban areas but also many provinces in the Mekong Delta, which is considered the country’s rice bowl.

Many varieties of the grain from Cambodia and Thailand are displayed at markets in An Giang Province bordering Cambodia though it is one of the delta’s biggest rice producers.

Tran Hong Diem, a small trader at An Giang’s Tinh Bien international border gate market, said: "Most locals like Cambodian rice since they are delicious and reasonably priced.

"Foreign varieties that small traders in Tinh Bien like me are selling account for 80 to 90 per cent of the total sales."

Truong Thi Dang, a rice agent also in Tinh Bien said: "Pac Tam and Soc varieties of rice from Cambodia are delicious and cost around VND8,000 for a kilogramme.

"Vietnamese varieties cost VND7,500 to above VND10,000 while the quality is worse."

In Tinh Bien, many farmers grow Vietnamese strains like IR50404 and than nong . However, after the harvest, they sell all their stocks to dealers and buy Cambodian rice for their use, she said.

"In the past, when life was still hard and getting rice to eat was considered fortunate, it did not matter if it was good or not. But now we have much better lives and so are keen to eat good food," Nguyen Ngoc Hieu of Xuan To Commune said.

Not only An Giang, but also many other provinces in the delta, like Dong Thap, Kien Giang, Tien Giang, and Long An, are also flooded by foreign rice varieties.

Nguyen Thi Tuyet, a rice trader in Long An, said people in Long Xuyen, Can Tho, and HCM City like Thai rice varieties and these markets can absorb unlimited volumes.

"High-yield Vietnamese varieties that are grown widely in the Mekong Delta, such as IR50404 and OM 3217, are mostly sold to companies to export. Only a little is sold domestically," she said.

High-quality rice development

Huynh The Nang, vice president of the An Giang People’s Committee, admitted that provinces, including his own, do not yet have plans to reverse the situation.

But the fact is that the delta region, including An Giang, has for long focused on growing rice for exports but not domestic consumption and as a result there is a shortage of rice varieties that meet local tastes, he said.

"So, it is hard to keep out foreign rice of better quality," Nang also admitted.

Analysts described the phenomenon as a paradox since Viet Nam is not just an agricultural country but also the world’s third largest rice exporter.

This could result in losing the domestic market to imports, especially because the time for Viet Nam to open up its rice market is approaching, they said.

They said to avert this, earmarking areas specialising in growing high-quality rice for the local market is an urgent task.

Prof. Vo Tong Xuan, former Rector of An Giang University, said the country has many high-quality varieties like nang nhang, nang huong and tam xoan. But their output remains low and cannot meet domestic demand, he said.

It is time for Viet Nam to pay attention not only to the volume of grain it grows but also quality because it is the most important factor in achieving success in a competitive market, Xuan said. — VNS

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