Delta Farmers Expand Areas Of Rice cultivation As Prices Climb
05/10/2008

CUU LONG DELTA — Farmers in the Cuu Long (Mekong) Delta are expanding their cultivation areas for the summer-autumn rice crop to 1.5 million ha to take advantage of higher rice prices.

With the average rice price now at VND5,000 (US$.35) a kilo, farmers can earn a profit of VND20 million ($1,250) from one ha of rice.

Expansion will occur in An Giang, Dong Thap, Tien Giang and Vinh Long provinces, which lead the delta in rice cultivation.

An Giang Province alone has plans to plant more than 290,000 ha of summer-autumn rice crop, an increase of 9,000 ha compared to last year, according to the province’s Department of Agriculture and Rural Development.

An Giang Province has the largest rice cultivation area in the country and an annual rice output of 3 million tonnes.

Several farmers in the Delta have also turned their vegetable and tree farms into rice fields for the upcoming crop, according to the area departments of agriculture and rural development.

In Vinh Long Province alone, farmers have turned about 500 ha of vegetables and other trees into rice fields.

Delta farmers have been encouraged to use advanced techniques and modern equipment to reduce production costs.

The Cuu Long Delta provinces are expected to harvest about 7 million tonnes for this summer-autumn rice.

Raw materials

The high price of fertiliser is affecting the pocketbooks of farmers in the Mekong River Delta, who are in the peak season for seeding a new rice crop on 1.5 million ha of land.

Nguyen Cong Hau, a farmer in the southern province of Dong Thap, said he must now spend VND1.3 million to buy a 50-kilo bag of DAP fertiliser, a hike of VND300,000 (US$18) compared with the past month.

In Soc Trang and Bac Lieu Provinces, the price of urea fertiliser has jumped to VND450,000 per 50 kilo bag, with an increase of VND130,000 against last month.

Tran Kinh Lam, a farmer in My Tu District in Soc Trang Province, said he was tilling his farm and preparing for seeding but did not have enough money to buy fertiliser. He must pay an additional VND450,000 for each bag.

"We’re happy with the increased price of rice, but it may not catch up with the hikes in raw materials," Lam said.

For each 1,000 sq. metres, farmers are spending an additional VND350,000 for production.

Phan Dinh Duc, general director of a fertilizer and petrochemical company, said global hike in prices had affected local fertiliser prices.

Duc said beside the 100,000 tonnes of urea fertiliser in stock, the company’s sources from imports and others was around 400,000 tonnes, enough for the current crop.

Banks are also delaying loans to farmers, who are being forced to purchase raw materials from companies on credit. — VNS