Floods could curb rice exports, Vietnam says

Floods could curb rice exports, Vietnam says

HANOI (Reuter): Vietnam, the world's third largest rice exporter, said on Wednesday that possible food shortages caused by floods in the Mekong Delta could force it to cut or delay exports of the staple.

The death toll from flooding in the delta in the far south, the country's main rice-growing area, rose to 180 with the confirmed destruction of crops and property surging to 800 billion dong (US$73 million), government officials said.

The floods -- the result of heavy rains in catchment areas further north in China, Thailand, Laos or Cambodia -- have destroyed at least 200,000 tons of rice in the delta.

Australia became the first country to respond to a Vietnamese Red Cross appeal last week for international help, pledging A$100,000 ($75,000) to help flood and typhoon victims.

Prime Minister Vo Van Kiet earmarked 15 billion dong ($1.4 million) in extra relief aid for six flood-hit Mekong Delta provinces, official newspapers reported.

He told the commerce and agriculture ministries to cut or delay rice exports if necessary if flood damage caused shortages, the ruling Communist Party daily Nhan Dan said.

"In a situation in which the floods may last longer, the Ministry of Commerce must coordinate with the Ministry of Agriculture and Food...to guarantee the balance of supply and demand, in order to closely adjust rice exports," it said quoted a decision by Kiet.

"In case of necessity, it must cut back or delay rice export contracts."

Heavy rains

Vietnam, the world's third largest rice exporter after the United States and Thailand, has already suffered estimated losses of 300,000 tons of rice in the northern Red River Delta rice-bowl because of heavy rains in August.

The government has not issued a comprehensive estimate of damage from bad weather to its planned 1994 rice harvest of 22.1 to 22.3 million tons, slightly up on last year.

It has forecast exports of two million tons this year, up from 1.7 million tons in 1993. Rice is the country's main export, along with crude oil.

The latest flooding death toll, up from 175 last weekend, took the number of deaths in bad weather disasters to more than 200 over the last two months.

Typhoons last month killed 27 people in three central northern provinces, destroyed crops and washed away some 5,000 houses.

The Red Cross last Friday appealed for a one million dollar fund to help 150,000 "most vulnerable" people, including settlers who fled across the border into the Mekong Delta region last year during disturbances in Cambodia.

Announcing Australia's contribution, its embassy here said the money would be used to buy emergency relief supplies including mosquito nets, first aid kits, rice and blankets.

According to Nhan Dan, Kiet said local authorities had to ensure rice acreage and yield for the coming 1994-95 winter- spring crop. He told the agriculture ministry to support provinces with seeds and fertilizers.