The skyrocketing world prices of fertiliser have been threatening rice production in Vietnam.
World fertiliser prices have hit the highest peak in 50 years. In the domestic market, the price has increased two times since early September.
In fact, most farmers still have to purchase fertiliser products at prices higher than the producers’ announced prices. They cannot buy products directly from producers or sale agents, but from speculators. In some cases, they have to purchase on credit, and have to pay interest for the purchasing deals.
Dr. Vo Tong Xuan, a senior agriculture expert, said that it was necessary now to change the cultivation habits of farmers. 50% of farmers in the Mekong River Delta always put down too much fertiliser, which may push up the rice production cost, while raising the possibility of insect infection, and badly affecting the rice yield.
According to Xuan, as the price of kerosene has increased by three times compared to the previous year’s level, some big fertiliser producers have to cut production, lowering supply, which has contributed to the skyrocketing fertiliser prices.
An economist said while fertiliser and other material prices keep increasing, farmers cannot define the selling prices of their rice products. Farmers will be the biggest sufferers.
Vietnam Economy