Concerned about backlog of agricultural products, Ministry of Industry and Trade holds urgent meeting
Deputy Minister Do Thang Hai chaired the meeting. |
Speaking at the meeting held by the Ministry of Industry and Trade on removing difficulties for agricultural products due to the impact of corona virus (nCoV) on February 11, Mr. Nguyen Huu Dung, Director of Dong Thap Industry and Trade Department, said that the epidemic has greatly affectedthe consumption of agricultural products in the province because most are exported to China.
The number of backlogged products is quite high,and it is expected to worsen in the near future. Currently, the largest backlogged product is sweet potato, with about 11,000 tonnes, chili is 6,700 tonnes and longan is 12,000 tonnes.
In addition, mango is a key product of Dong Thap, it will be harvested in the next 30 days. With an area of nearly 11,000 hectares of Cat Chu Mango and Cat Hoa Loc Mango, the harvested production is expected to be about 90,000 tonnes.
“Dong Thap asked the Ministry of Finance to propose the State to issue policies to support cooperatives and producers on production costs, consumption, bank interest rates, purchasing for temporary storage, preliminary processing or usingchilledwarehouses for preserving agricultural products during harvestperiod,” Dung said.
Ms. Nguyen Thi Lan, Director of the Trade Promotion Center (Dong Nai Industry and Trade Department) said that products in the harvest season and are affected in consumption due to nCoV epidemic are bananas and mango.
If the nCoV epidemic continues for a long time, some products that can be affected are jackfruit with an estimated output of 47,200 tonnes, harvest season from April to July; rambutan with an estimated output of 155,870 tonnes, harvest season from May to September; durian with an estimated output of 39,000tonnes, harvest season from April to August. The Department proposed the Ministry of Industry and Trade to support consumption for these products.
BinhThuan province is one of the localities heavily affected in the consumption of agricultural products due to the nCoV epidemic, especially dragon fruit. According to Mr. Ha Le Thanh Chung, Deputy Director of BinhThuan Industry and Trade Department, the total output of dragon fruit in February and March of the whole province is expected to reach 96,111 tons.
If not restructuring and producing according to market demand, Vietnamese agriculture products continue to face difficulties. Photo: N.T |
Currently, exporters that have chilledwarehouses are still buying dragon fruit for farmers. The Industry and Trade Department has proposed exporters to hire more warehouses to purchase dragon fruit. However, the province also wants the support of retail businesses such as supermarkets and commercial centers.
Currently, some dragon fruit exporters requested the Ministry of Industry and Trade to direct the Import and Export Department to study Cambodia and Myanmar markets and seek ways to associate with importers.
With the current price of dragon fruit, Vietnamese dragon fruit can be exported to the two markets. In addition, with the official export of dragon fruits, the province proposed the General Department of Taxation to consider reducing corporate income tax for exporters.
“Currently, businesses have no output, but they still purchase products, preserve in chilledwarehouses or hire warehouses of logistics enterprises for storage. Therefore, some businesses proposed to be supported with electricity cost,” Chung said.
Dang Van Tuan, Deputy Director of Tien Giang Industry and Trade Department said the province has exported fruits such as durian, jackfruit, dragon fruit, green grapefruit and mango. Notably, nearly 70 percent is exported to China.
“I proposed to boost trade promotion and coordinate with ministries and sectors to support localities withprocessing plants and issue policies to support costs of storage and electricity. In addition, businesses also want to reduce logistics costs in general, because Vietnam's logistics costs arestill high,affecting competitiveness of agricultural exports in particular and export goods in general,” Tuan said.
Despite many difficulties, Tuan also expressed a positive view that the current situation is also an opportunity to further promote the restructuring of the agricultural sector, to ensure the sustainable development of commodities that need to be produced according to market demand.
Deputy Minister of Industry and Trade Do Thang Hai said the harvest season of dragon fruits is short.First of all, it must focus on the domestic market. In addition, the potential marketsin focusare Cambodia and Myanmar. He requeststhe Asia-Africa Market Department pay attention to this issue.
“With the proposal of Tien Giang Industry and Trade regarding support forelectricity costs, logistics costs or reduction of corporate income tax, we will summarize it to propose to competent agencies. In the long term, the basis for solving this issue and avoiding repeating the rescue of agricultural products, is to restructure in agricultural production and associate production with consumer markets," Hai said.
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