2.3. assessment of the efficacy of the policy of State intervention in the market
1. pros
based on privacy policies of ceiling and floor prices that Government has sworn to protect the interests of consumers.
tuning was the price of the agricultural products and other commodities on the market.
Does to reporting beyond the bridgeexceedingly oversupply.
Take our country from importing States to become exporter of rice and major agricultural products in the world.
agricultural commodities are more countries in the world accept.
policies suitable to Vietnam's farmers do not suffer losses during the season.
2. Cons
policy but does not enforce thoroughly, enterprises still arbitrarily dumping bad influence.
sometimes offer prices that are not reasonable causes of excess or shortage of goods in the market.
When rice prices plummeted still haven't found the right measures to regulate
Still to State enterprises forced prices farmers.
The production of agricultural products and not focus on quality that ran under the number is is mainly agricultural product quality is low.
When policy reviews need to accompany these measures when the price is not reasonable.
To overcome the weaknesses of the floor price, ceiling price policy the Government proposed several measures:
Accordingly, mechanisms, support policy will perform in both "input" and "output" to produce through the solution: State loan interest rate support for the rice to buy supplies and inputs such as rice varieties, fertilizers, pesticides, and support businesses to buy temporary rice reserves. This mechanism is implemented, the State established the paddy price stabilization fund, the rice and allow businesses to buy paddy volume temporarily stored price stabilization Fund is used to directly offset the difference between the market price and the price floor. According to calculations, this stabilization fund spent about $ 1,000 billion per year to ensure required support both farmers and businesses. The Fund's revenue is part of the profit before tax of rice exported by all exporters of rice.
To produce truly was the beneficiary of this policy, the prerequisite is that business must buy grain directly from farmers. This is not easily done by today, procurement at the producers with less than 20%, the remaining 80% are still mediated, so bad farmers were coerced remains popular. Therefore, businesses must announce two categories in two different purchasing venues, in association with standard quality of rice to the producers the choice of selling their goods most favorable.
However, along with such support policies, to stabilize the rice market, rice in water, it should be made more uniform measures to ensure sustainability as: help farmers adopt scientific measures, reasonable investment to break even even when the price of rice, the rice in the market down. Food associations and the competent authorities should provide complete information about the market for farmers, help them consider "buy nothing, sell nothing", where the most lucrative ... On the business side, the need to streamline the system of procurement of rice producers and speeding up the building of temporary rice storage warehouses to export rice, temporarily stored until the rice off exports of goods, not for reporting that the farmers face losing seasons was the price, also the season the bottom price.
in the paddy rice, market conditions are always fluctuating, the policy of assisting producers and stabilize grain price Foundationrice is necessary to help the farmer assured production, Enterprise peace of mind purchasing. From there, raising the value of Vietnamese rice seeds and increase export turnover of Staples, ensuring plenty of goals, both short term and long term.
from the beginning of the year, the Government has decided to buy a temporary grain storage. Forms of aid for the purchase of temporary rice storage so far is still afforded preferential interest rates for business based on the amount of rice by interim allocation. However, this policy in the past has not achieved the purpose of assuring farmers grow rice expert from 30% or more. To the profit of the farmer is guaranteed, transfer for the purchase of rice to store temporary reserves.
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