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Vietnam to suspend rice exports for one month
' HANOI, Oct 13: Vietnam said Wednesday It will susjxmd rice exports for a month to ensure adequate domestic supplies following floods in the Mekong Delta, but the move is expected to hurt growing but shaky overseas sales, reports AFP.
The Ministry of Agriculture ordered state export firms to suspend sales for a month from mld-October to allow time to assess the impact of the floods that have wiped out tens of thousands of hectares (acres) of crops.
The order comes as Vietnam, the world's third-largest rice exporter, after Thailand and the United States, was looking forward to a record year of exports.
■ But heavy rains in the Mekong catchment area have boosted water levels in the delta, which in turn has flooded wide areas, killed at least 180 people and caused an estimated 80 million dollars in damage. The floods are now in decline.
Vietnam exported 1.8 million tonnes of rice last year and was expecting the figure to rise to 2.2 million tonnes this year due to new contracts with Malaysia. Indonesia and the Middle East, and to the opening up of the US market.
The suspension is likely to strike a blow to Vietnam's rice exporting firms, which have been emerging from a crisis year following problems with shipping and credit that nearly crippled growth in sales.
Vo Quang Diem. Deputy General Director of Southern
Vietnam’s largest rice trading firm. Vinafood II, said in a telephone interview that his company would respect the government's order despite having stocks of around 70.070,000 tonnes of rice.
But he said he hoped the ministries of agriculture and commerce would allow the firm to sell at least a token amount to key clients in Indonesia and Malaysia to maintain the company's credibility.
The move came as Deputy Prime Minister Phan Van Khai told a world economic^ forum conference In Singapore that the flood would have no serious impact on Vietnam's economy or its rice sales.
Khai said that only 200,000 tonnes of the crop had been lost and that Vietnam's reserves would be sufficient to meet domestic needs.
But the ministry of agriculture has said the temporary export ban was necessary to ensure adequate supplies across the country.
Officials in Dong Thap province, the worst-hit arpa in the delta, said that the water level had begun to decline in recent days.
Vietnam earned around 300 million dollars from rice sales last year, making the commodity among Its most important exports after oil.
Rice exports soared to two million tonnes In 1991 after economic reforms freed farmers from state-restrictions and boosted production. But sales fell over the next two years as a credit shortages and transport problems emerged.