Khammuan turns down gov't funding for rice stockpile
Flood-affected Khammuan province has turned down an offer of 50 billion kip in funding from the government to buy rice to stockpile because it first wants to improve its storage facilities.
Provincial authorities said they didn't want to accept the money at the present time because they don't have the means to efficiently store rice.
They need 40 billion kip to build a rice drying unit and improve the warehouse and rice mills, so that they can supply higher quality rice.
Provincial Industry and Commerce Department's Trade Promotion and Development Office Head, Mr Viseth Khotsouvan, told Vientiane Times last week he was confident the drying unit would be operational next year if it receives government funding.
The government last year approved 20 billion kip to establish a rice stockpile project in the province, which currently has 13 rice mills and 5,000 tonnes of rice in storage.
Khammuan was the province most affected by tropical storms Haima and Nock-Ten last wet season, with the agriculture sector suffering about 300 billion kip in damage, particularly to rice and irrigation systems.
Mr Viseth said the project would help to keep the price of rice stable, despite decreased production last wet season.
In normal conditions, when rice crops are not affected by flooding and drought, farmers have been able to produce over 200,000 tonnes of rice, creating a surplus that is sold to neighbouring provinces or to Vietnam.
Last year, the province sold 30,000 tonnes of surplus rice, but Mr Viseth said no rice would be sold this year.
The rice stockpile project was established in Khammuan, Xekong, Saravan, Xieng Khuang, Oudomxay and Luang Prabang provinces, and will likely be expanded into other provinces, according to the Domestic Trade Department.
The project has so far proven successful in Khammuan, so the government is looking to promote the province as a model for future implementation.
Southern Champassak province, also affected by last year's tropical storms, has asked the government for more than 30 billion kip to set up a rice stockpile that would enable authorities to keep rice prices stable at times when they would normally peak. The government has yet to approve funding.
The province would use the funds to buy paddy rice from farmers to store in mills and later sell when rice prices peak, as they are expected to do from 2011-2013.
The price of rice around the country is currently 5,000 to 6,000 kip per kg.
