Vietnam - Rice farmers enjoy government benefits

From July 1 this year, the Government will provide subsidies to rice farmers if their crops are damaged due to natural disasters, in addition to their regular annual subsidies.

This is regulated in Government Decree No 42/2012 ND-CP signed by Prime Minister Nguyen Tan Dung on May 11.

Under the decree, the Government will subsidise 70 per cent of the cost of fertiliser and pesticides when losses top 70 per cent; or 50 per cent when farmers lose from 30-70 per cent of their crops.

In addition, the Government will also pay for 70 per cent of the cost of reclaiming fallow land, or rehabilitating land for wet rice cultivation.

According to the decree, the Government will provide rice seed free of charge to farmers in the first year in areas which have been reclaimed, while supporting 70 per cent of the seed price for the first rice crops on rehabilitated land.

The Government is also committed to supporting insurance costs for rice production in accordance with Vietnamese law.

The decree also regulates that the Government will subsidise 500,000 VND (25 USD) per hectare per annum for land used specifically for cultivating wet rice, and 100,000 VND (5 USD) per hectare per annum for other types of rice – excluding terraced rice fields claimed by the farmers themselves.

The decree calls on relevant authorities to encourage rice cultivation rather than other crops, and to urge people to reclaim fallow land for wet rice cultivation.

It also prohibits any activity that causes pollution, degrades or distorts the land which will make it infertile.

VNA

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