Traders Hesitant to Make Deposits for Winter-Spring Rice

Rice prices in the Mekong Delta have significantly decreased compared to last year, causing concern for farmers as the 2024-2025 winter-spring harvest approaches. In Thoi Lai district, Can Tho City, farmers report prices around 6,100-6,200 VND/kg for Dai Thom 8 rice, a sharp drop from 8,000 VND/kg last year. This decline has made traders reluctant to offer pre-harvest deposits, leaving farmers like Ha Thanh Can to wait and sell at market price. Traders are offering fixed low prices or willing to forfeit deposits if market prices rise, minimizing their risk. This hesitation extends to other areas, with traders in Dong Thuan commune only registering purchase quantities without pre-pricing or deposits. While some farmers have secured contracts with companies like Trung An High-Tech Agricultural Joint Stock Company for stable, though potentially lower, prices, many remain uncertain. The fluctuating market prices create instability for both farmers and the agriculture in Vietnam. Favorable weather conditions predict a high yield, around 9 tons/ha, but the price uncertainty leaves farmers anxious about profitability.