Farmers enjoy unsatisfactory benefits from high rice prices, says areport recently launched by the Institute of Policy and Strategyfor Agriculture and Rural Development (IPSARD) and Oxfam.
According to the report, entitled “Who has benefited from high riceprices in Vietnam ?”, falling world rice prices will pull farmers’selling prices down, however, when the world rice prices go up, farmersgain little from it.
Tran Cong Thang, an expert fromIPSARD and one of the co-authors of the report, said that benefits inthe rice value chain are distributed unfairly. Rice farmers in theMekong Delta province of An Giang received only 30 percent of theprofit in the value chain even though they bear 60 to 70 percent of thetotal production costs.
The remainder of profits is splitbetween exporters and intermediaries in the Mekong Delta, where theirrole of intermediaries does not go unnoticed, he added.
World Bank and Oxfam studies in 2012 indicated that the average incomeof rice growing households in the Mekong Delta, the region with the bestrice growing conditions, was merely 535,000 VND (some 24.5 USD) perperson per month, which is about half the minimum living wage.
Therefore, farmer households with less than 2ha of land do not live ononly rice growing but on other incomes from husbandry, aquaculture ornon-agricultural business.
The Oxfam report analysesfluctuations of food prices and other related issues such as foodsecurity and poverty, especially for small-scale producers andvulnerable women. It also points out that rice export policies benefitexporters as the policy making process does not involve farmers.
The report puts forth seven recommendations, including strengtheningthe voice of farmers through associations and ensure they are heard intrade regulation and policy making processes; improving direct linkagesbetween rice growers, exporters and importing countries; and developing astrategy to improve the quality and brand of Vietnamese rice toincrease demand and higher added value.
It suggestsforming commercial rice production areas with the participation offarmers, developing high-quality and climate resistant rice varieties,building rice warehouses to help maintain rice quality after harvesting,and setting a start-of-season floor price that takes into account allproduction costs and regional variations.
To develop asustainable, effective and equal rice production industry for Vietnam,polices should be changed to increase benefits for small-scale farmers,said Andy Baker, Oxfam Chief Representative in Vietnam.
Policies on rice growing and export need to focus on farmers who directly produce rice, he added.
According to Dr. Dang Kim Son, IPSARD Director, rice production is animportant advantage of Vietnamese agriculture and also a livelihood formost local households. However, in the rice value chain, farmers gainmuch less than other stakeholders.
The report is part ofOxfam’s global campaign named “GROW” to look towards a future whereeveryone on the planet always has enough to eat.-VNA
According to the report, entitled “Who has benefited from high riceprices in Vietnam ?”, falling world rice prices will pull farmers’selling prices down, however, when the world rice prices go up, farmersgain little from it.
Tran Cong Thang, an expert fromIPSARD and one of the co-authors of the report, said that benefits inthe rice value chain are distributed unfairly. Rice farmers in theMekong Delta province of An Giang received only 30 percent of theprofit in the value chain even though they bear 60 to 70 percent of thetotal production costs.
The remainder of profits is splitbetween exporters and intermediaries in the Mekong Delta, where theirrole of intermediaries does not go unnoticed, he added.
World Bank and Oxfam studies in 2012 indicated that the average incomeof rice growing households in the Mekong Delta, the region with the bestrice growing conditions, was merely 535,000 VND (some 24.5 USD) perperson per month, which is about half the minimum living wage.
Therefore, farmer households with less than 2ha of land do not live ononly rice growing but on other incomes from husbandry, aquaculture ornon-agricultural business.
The Oxfam report analysesfluctuations of food prices and other related issues such as foodsecurity and poverty, especially for small-scale producers andvulnerable women. It also points out that rice export policies benefitexporters as the policy making process does not involve farmers.
The report puts forth seven recommendations, including strengtheningthe voice of farmers through associations and ensure they are heard intrade regulation and policy making processes; improving direct linkagesbetween rice growers, exporters and importing countries; and developing astrategy to improve the quality and brand of Vietnamese rice toincrease demand and higher added value.
It suggestsforming commercial rice production areas with the participation offarmers, developing high-quality and climate resistant rice varieties,building rice warehouses to help maintain rice quality after harvesting,and setting a start-of-season floor price that takes into account allproduction costs and regional variations.
To develop asustainable, effective and equal rice production industry for Vietnam,polices should be changed to increase benefits for small-scale farmers,said Andy Baker, Oxfam Chief Representative in Vietnam.
Policies on rice growing and export need to focus on farmers who directly produce rice, he added.
According to Dr. Dang Kim Son, IPSARD Director, rice production is animportant advantage of Vietnamese agriculture and also a livelihood formost local households. However, in the rice value chain, farmers gainmuch less than other stakeholders.
The report is part ofOxfam’s global campaign named “GROW” to look towards a future whereeveryone on the planet always has enough to eat.-VNA
