Vietnam’s rice exports in the first four months of this year reached over 2.1 million tons, up 23.4 percent over the same period last year, according to the Vietnam Food Association (VFA).

However, low global demand, plus the financial pressure forcing rice businesses to sell rice at lower price, has driven down the prices by about $30 per ton during the period.

The price drops, as a consequence, have brought in the cancellation of the rice deals for 280,000 tons in January-April.

Some 2.2 million tons of rice are expected to be exported in the second quarter of this year, bringing total rice exports in H1/2013 to about 3.65 million tons, said VFA.

VFA will propose the government to transfer its role in purchasing rice from local rice businesses for stockpile to local state agencies, said Truong Thanh Phong, VFA Chairman in a recent meeting in Ho Chi Minh City.

“The policy to support the purchase of rice for stockpile is one of the Government’s measures to consume a certain amount of rice during harvest season in the Mekong Delta,” Deputy Prime Minister Hoang Trung Hai told the Vietnam News Agency.

“It will help regulate the price of rice, ensuring a profit for farmers, instead of giving them money,” he added.