High rice price motivates farmers in Laos
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The rising cost of rice is encouraging farmers across the country to grow more crops following low prices throughout last year.
Many rice growers across the country did not plant rice crops last year, shifting instead to sweet corn, eggplant, melon and other cash crops that provide a better return.
The price of paddy rice hovered between 1,000 kip (Bt4) and 1,500 kip per kg last year, but has since risen to between 2,500 kip and 2,600 kip per kg, according to the Vientiane Capital State Foodstuff Enterprise. That works out to about 6,000 kip to 6,500 kip per kg of polished rice.
Enterprise director Khamla Saengdara said current prices were fairer on farmers and producers as expenditure on land preparation, labour, harvest and processing had also increased.
Khamla said new milling equipment capable of separating better grain had improved the quality of some rice products for both domestic consumption and export.
He said the improvements had increased the value of Lao rice and would help the country reduce its reliance on rice imported from neighbouring countries.
High-quality polished rice with government certification can sell for as much as 8,000 kip per kilogramme.
Most Lao rice varieties are produced without the aid of chemical fertilisers or pesticides.
Laos is currently one of the largest rice growers in the Asean region, with average rice exports to Vietnam, Thailand, China and further afield averaging 200,000 to 300,000 tonnes per year, according to the Ministry of Agriculture and Forestry.
The ministry aims to increase rice production from 3.8 million tonnes this year to 4 million tonnes next year and 4.2 million tonnes by 2015.
To encourage rice cultivation for both domestic sale and export, the ministry will encourage farmers to move away from traditional methods towards the use of modern technology.
The ministry will also work closely with international organisations and neighbouring countries in research to produce better quality rice seeds and to advise farmers on how to protect and better grow their crops. Khamla said the price of pork had dropped from 21,000 kip per kilogramme in August to about 18,000 kip now, as demand was up for fish, rats, birds and small frogs.
However, the cost of beef remains high in Vientiane at about 65,000 to 70,000 kip per kilogramme.
