Government to buy another 90,000 tonnes of coffee
Ha Noi, March 20 (VNA) -- The Government is to buy another 90,000 tonnes of coffee as part of a planned 150,000-tonne reserve.
The Government's decision will help growers, processors and exporters overcome financial difficulties caused by the sharp drop in the world coffee price, says Viet Nam Coffee and Cacao Association, VCCA, Chairman Doan Trieu Nhan.
The Viet Nam Coffee Corporation, Vinacafe, and the VCCA have allocated buying quotas to coffee-growing localities in the Central Highlands and eastern Nam Bo, southern Viet Nam, and Vinacafe affiliates.
An Agriculture and Rural Development Ministry - VCCA coffee buying inspectorate will be established in the Central Highlands later this month.
The earlier buying and stockpiling of 60,000 tonnes has increased coffee prices from VND 5,700 a kilo to VND 6,000 and 6,500 a kilo.
But coffee is now selling on the world market for only USD 400-440 a tonne - about 60 percent of production cost.
This means farmers should attend coffee processing and post-harvest activities, rather than investing in more cultivation, says VCCA Chairman Nhan.--VNA
