VINAGRI News - Vietnam’s agriculture authorities are proposing flexible stockpiling policies and credit support for rice exporters to stabilize the market as paddy prices fall in the Mekong Delta during the peak Winter - Spring harvest. Rising global supply and softer import demand from key markets may continue to pressure rice prices in the near term.
Summary:
> Vietnam is considering flexible rice stockpiling and credit support to stabilize markets as paddy prices fall.
> The Winter - Spring crop accounts for about 55% of annual rice production.
> India’s relaxed export policy and rising global supply may put pressure on rice prices.
> Major buyers such as the Philippines and Indonesia could reduce import demand.
> Global rice production in 2026 may increase by about 10 million tonnes.
> Vietnam still recorded a 5% rise in rice exports in the first two months of 2026.
> Authorities estimate around 4 million tonnes of rice available for export in the first half of the year.
> The government plans to strengthen stockpiling, credit support, and market oversight to protect farmers’ incomes.
Vietnam’s Ministry of Agriculture and Environment has proposed several measures to support farmers and stabilize the rice market as paddy prices in the Mekong Delta continue to decline, eroding farmers’ profits. Authorities said flexible stockpiling policies and credit support for rice purchasing and exporting enterprises will be needed to maintain market stability during the peak harvest period.
Speaking at the ministry’s regular press briefing on March 11, Nguyen Quang Hieu, Deputy Director of the Department of Crop Production and Plant Protection, said that the government should adopt flexible policies for purchasing and stockpiling rice while also expanding credit access for businesses involved in rice procurement and exports. These measures are intended to stabilize the market and ensure farmers achieve the government’s target of at least 30% profit margins.
In addition, trade promotion programs need to be strengthened to expand and diversify export markets. In the longer term, the rice sector will continue to focus on improving product quality and building stronger branding for Vietnamese rice in order to increase value and enhance competitiveness in global markets.
Deputy Minister of Agriculture and Environment Phung Duc Tien also emphasized that support policies for the rice sector must be maintained regularly and implemented in a coordinated manner to ensure efficient production and sustain the goal of a minimum 30% profit for rice farmers.
According to Nguyen Quang Hieu, the Winter - Spring crop is the most important rice production season of the year, accounting for around 55% of Vietnam’s total annual output. Production conditions this year have generally been favorable, with limited pest and disease pressure, suggesting that rice supply will be relatively abundant.
However, the rice market could face several pressures in the coming months. One key factor is India’s continued easing of rice export restrictions, which could increase global supply. At the same time, major import markets for Vietnamese rice such as the Philippines and Indonesia may reduce their purchasing demand, potentially putting further pressure on export prices.
Some forecasts also indicate that global rice production in 2026 could increase by about 10 million tonnes, which may contribute to a decline in international rice prices.
Do Ha Nam, Chairman of the Vietnam Food Association, recently told the media that Vietnam’s rice exports are currently facing several challenges. For instance, the Philippines - Vietnam’s largest rice import market - has made adjustments to its import policies, which could affect Vietnam’s market share. Demand in other markets such as Indonesia has also shown fluctuations.
At the same time, global rice supply is rising, intensifying competition and exerting downward pressure on export prices. According to Do Ha Nam, rice exporters are also facing difficulties due to rising interest rates and higher fuel prices, which are pushing up production and transportation costs.
In addition, new regulations from the Ministry of Finance requiring payments via bank transfers have created complications in some localities where farmers prefer cash payments when selling paddy. This has caused difficulties for direct transactions between companies and farmers, a problem that affects not only rice but also other agricultural commodities.
Despite these challenges, Vietnamese companies are actively seeking to expand their markets, particularly in Africa, China, and other potential destinations. As a result, Vietnam’s rice exports in the first two months of the year still increased by about 5% compared with the same period last year.
To reduce risks for farmers, Do Ha Nam suggested that the government should encourage enterprises to participate in rice purchasing and stockpiling programs in order to support consumption during peak harvest periods and prevent sharp declines in paddy prices. He also stressed the importance of promoting government-to-government (G2G) export contracts, which have historically helped maintain stable markets.
In addition, exporters should continue to expand their markets and secure more export contracts to ensure stable outlets for rice. Given that production costs and interest rates remain high, strengthening credit support policies for rice purchasing enterprises will also be essential.
The Vietnam Food Association has reported the situation to the Ministry of Industry and Trade and the Ministry of Agriculture and Environment, while calling on exporters to increase contract signings. As the Winter - Spring harvest enters its peak period, companies are urged to actively purchase paddy from farmers.
Banks are also encouraged to expand financing support for enterprises engaged in stockpiling rice. This would help prevent excessive supply from entering the market at once during the harvest season, thereby stabilizing prices and protecting the interests of both farmers and businesses across the rice value chain.
Earlier in January 2026, in a report sent to the Ministry of Industry and Trade on balancing rice supply and demand for export management, the Ministry of Agriculture and Environment estimated that around 4 million tonnes of rice would be available for export in the first six months of the year.
Rice supply is expected to peak in March and April. Regarding the organization of rice procurement for export, the ministry proposed that the Ministry of Industry and Trade coordinate with provincial authorities to develop standardized procurement mechanisms. This would involve traders and collection agents participating in supply chains linked with exporters and processing facilities through formal procurement or agency contracts.
Traders participating in the system must register their businesses and comply with commercial regulations. Exporters and processing facilities are also required to publicly disclose their purchasing points and clearly list buying prices based on rice variety, quality, and seasonal conditions to ensure market transparency.
Authorities will also strengthen market inspections and strictly handle violations such as trade fraud, price manipulation, and speculation in order to ensure balanced benefits for both producers and enterprises.
NPK/ Vinagri News
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