Farmers may get interest-free loans
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The Ministry of Agriculture and Rural Development has asked the government to offer financial support to farmers who agree to stockpile rice.
With world rice prices expected to drop due to abundant supply, the ministry said it wanted to help farmers by preventing prices from falling in the domestic market.
The stockpile plan would begin on a trial basis in An Giang, Kien Giang, Dong Thap and Tra Vinh provinces.
Farmers, agricultural cooperatives and farm owners who agree to stockpile rice receive interest-free loans equivalent to the value of the stockpiled volume for a maximum of three months.
Businesses that take part directly in rice production or have contracts to purchase rice from farmers will also have interest-free loans.
Food companies assigned to buy and stockpile rice by local authorities will receive interest-free loans as well.
Under the plan, the country is expected to stockpile a maximum of 2.5 million tonnes of rice from the winter-spring crop and the summer-autumn crop.
