Decision No. 140/TTg On the policy orientation and measures for managing the business of foodstuffs and fertilizers

Pursuant to …;

On the policy and measures for managing grain trade

and fertilizers

PRIME MINISTER

Pursuant to the Government Organization Law dated September 30, 1992;

To ensure the national food security goal, to regulate grain and fertilizer trading activities, and to protect the interests of both producers and consumers;

Considering the proposal of the Minister of Trade and the Minister of Agriculture and Rural Development,

DECISION:

Article 1. Regarding the consumption of commercial rice, grain trade, and rice export:

1. State management work and the utilization of economic components in the consumption of commercial rice, grain trade, and rice export must aim at purchasing all commercial rice promptly at reasonable prices to ensure the benefits of rice growers, provide sufficient grain for domestic consumption needs, maintain national food security reserves, and effectively export rice.

2. The Ministry of Agriculture and Rural Development shall take the lead, in coordination with the People's Committees of provinces, to study and widely disseminate high-yield rice varieties suitable for each ecological region, ensuring quality according to domestic market and export requirements.

Expand the application of advanced drying and processing technologies for rice and corn (using plastic sheets, small, medium, and large-scale dryers), and appropriate storage methods for various grains based on local conditions to reduce post-harvest losses, improve agricultural product quality, especially summer-autumn rice in the Mekong Delta.

The Ministry of Finance shall take the lead, in collaboration with relevant ministries and sectors, to study suitable forms for households and businesses to borrow from the National Investment Support Fund for investment in improved drying facilities, processing, and grain storage.

3. Commercial rice consumption

- The Chairmen of the People's Committees of provinces are responsible before the Prime Minister for directing economic components to use their own capital to participate in purchasing all commercial rice produced within their areas, milling and processing for domestic consumption and export.

Based on the opinions of the Government Price Board, the Chairman of the Provincial People's Committee must announce the minimum purchase price for paddy right from the beginning of the crop season to encourage and ensure the benefits of rice growers and consumers, closely monitor and prevent organizations and individuals from underpricing and buying paddy from farmers below the prescribed price.

- The Ministries of Agriculture and Rural Development, Trade, Finance, the State Bank of Vietnam, and related sectors, within their respective authorities and functions, are responsible for directing and coordinating with the People's Committees of provinces, particularly those in the Mekong Delta, to promptly address local requests and difficulties to consume all commercial rice for farmers.

- Central Grain Trading Corporations must reform their organizational structure and business mechanisms, strengthen marketing efforts to expand export markets and conclude many export contracts with favorable prices, assist member companies and local companies in fulfilling assigned tasks of purchasing, processing, and exporting grains, while playing a leading role in cooperation with economic components in provinces to effectively purchase, process, and balance grain supplies for domestic consumption.

4. All organizations and individuals meeting the necessary conditions and registered for grain trade are permitted to purchase, mill, process, transport, and trade grain (excluding quantities allocated for export) to serve domestic consumption needs, thereby tapping into and utilizing their financial resources, labor, infrastructure, and experience actively involved in circulation, timely and conveniently meeting the grain demands of consumers, especially in remote, mountainous, urban, industrial zones, and grain-deficient regions.

State-owned enterprises with the function of grain trade must play a primary role in purchasing commercial rice, milling, processing, transporting, and trading grain to meet people's needs, especially in major cities, concentrated industrial zones, during peak harvest periods, and holidays, contributing to stabilizing prices and protecting the interests of rice producers and consumers.

Abolish the issuance of permits and transportation control for domestic grain; remove inter-regional grain trading taxes to ensure domestic grain circulation as a unified and smooth market according to supply and demand relations. In special cases, the Prime Minister will make separate decisions. Border control at checkpoints and land borders is the responsibility of border provinces and anti-smuggling agencies.

5. Regarding rice export:

- Based on evaluating production situations, balancing domestic grain needs, and national grain reserves, the Ministry of Agriculture and Rural Development is responsible for proposing annual rice export volumes for the Government's decision.

- The Ministry of Trade and the Ministry of Agriculture and Rural Development shall manage rice exports as follows:

- Rice export quotas are granted once at the beginning of the year to provincial People's Committees and some central enterprises, prioritizing provinces with abundant commercial rice in the Mekong Delta. By the end of September each year, based on production evaluations and export results, the Ministry of Trade and the Ministry of Agriculture and Rural Development will report to the Prime Minister for additional annual export quota decisions.

- Annually, based on provincial commercial rice quantities, especially those in the Mekong Delta, and proposals from the Ministry of Trade and the Ministry of Agriculture and Rural Development, the Prime Minister will approve the list and export quotas for provinces and some central enterprises.

- Under the direction of the Provincial Party Committee Standing Committee, the Chairman of the Provincial People's Committee is responsible before the Prime Minister for selecting provincial enterprises meeting export rice conditions and allocating export rice quotas to enterprises to implement the export rice quotas assigned by the Prime Minister to the province.

- The Chairpersons of the People's Committees of the Mekong Delta provinces, the Southern Food Corporation, and the Northern Food Corporation, who are assigned to export rice, shall be responsible for organizing the purchase of paddy and the export of rice according to the annual plan of the Government under the direction and supervision of the Ministry of Industry and Trade and the Ministry of Agriculture and Rural Development. - Enterprises assigned with the task of exporting rice must organize the direct purchase of paddy and rice at the source or through a system of agents collecting paddy and rice for export, ending the practice of purchasing exported rice from ship sides or through speculative organizations and individuals.

- Enterprises assigned to export rice shall not buy, sell, or transfer rice export quotas in any form. In cases where provinces are unable to implement the allocated quotas, the Chairperson of the People's Committee of the province must report to the Ministry of Industry and Trade for submission to the Prime Minister to adjust the quotas for other units to implement.

- To ensure the orderly management of rice exports, enterprises assigned to export rice must regularly report monthly and quarterly results of rice exports to the Ministry of Industry and Trade and the Ministry of Agriculture and Rural Development for monitoring and consolidation.

Each month, the leaders of the two Ministries: Industry and Trade, and Agriculture and Rural Development must jointly evaluate the results of rice exports and promptly take measures to guide localities in fulfilling their assigned tasks and report to the Prime Minister.

6. The State Bank of Vietnam shall be responsible for directing and guiding commercial banks to ensure loans for the timely purchase of commercial paddy from the people; initially, it must ensure sufficient funds for loans to purchase immediately at the beginning of the harvest season, especially the winter-spring crop each year for storage and export.

For loans to purchase paddy and rice for export according to allocated quotas, banks are allowed to base their lending on export contracts opened by the buyer with a letter of credit and the quantity of goods in stock.

7. Regarding food reserves:

Concentrate and unify all sources of food reserves into the National Reserve.

Assign the Ministry of Planning and Investment to lead together with the National Reserve Administration and relevant ministries and sectors to determine the annual national food reserve level and establish a mechanism for managing and operating the national food reserve to be submitted to the Prime Minister for decision in the direction of ensuring a safe national food level and organizing purchases and sales to carry out grain exchange and participate in price stabilization when necessary. The sale of the national food reserve must be sold to central and provincial food companies for these food companies to conduct retail business.

Initially, the National Reserve Administration must implement the purchase of paddy immediately upon harvesting the winter-spring crop 1996-1997 to be included in the national reserve according to the assigned plan.

To ensure food safety in 1997, allow the continued implementation of the circulation reserve level in the North at 60,000 tons of rice under the current mechanism; the reserve period ends in December 1997.

8. The Ministry of Finance shall lead together with the Ministry of Agriculture and Rural Development and the Government Price Board to establish a rice export insurance fund in the direction that this fund is formed from contributions of profitable rice exporting enterprises and a portion of initial support from the State Budget; this fund will be used to directly support producers and exporters of rice when encountering difficulties.

9. The Minister, Head of the Government Organizational-Cadre Department shall lead together with the Ministry of Agriculture and Rural Development to assist the Prime Minister in improving the Vietnam Food Import-Export Association, which must be an organization including companies and provinces exporting rice, aimed at protecting the rights and obligations of each member, farmers growing rice, and consumers. The association's charter should provide for provinces with large quantities of commercial food production or large amounts of rice exports to rotate as Chair.

Article 2. On importation and trading of fertilizers.

1. State management work in the field of fertilizer importation and trading must aim to bring fertilizer importation and trading into order, ensuring adequate and timely supply of fertilizers directly to farming households for production at reasonable prices, linking the supply of materials and services (primarily fertilizers) with the purchase of commercial paddy from farmers into a system, ensuring state management and operation.

- The Ministry of Agriculture and Rural Development shall be responsible for balancing and proposing the annual quantity of various types of fertilizers needed for agricultural production for the Government to decide.

- The Ministry of Industry shall soon develop an overall plan and strategy for the development of the fertilizer production industry until 2000 and 2010 in the direction of rapidly increasing domestic production to replace imports through self-financing or joint ventures to produce fertilizers.

2. The Ministry of Industry and Trade and the Ministry of Agriculture and Rural Development shall manage fertilizer importation and trading in the direction of:

- Each year, the People's Committees of the provinces, especially those in the Mekong Delta which use large amounts of fertilizers, must prepare plans for fertilizer needs for each crop and the whole year, along with the local capacity for self-importation, and report to the Ministry of Agriculture and Rural Development and the Ministry of Industry and Trade for balancing and determining import quotas for the provinces and some central enterprises assigned the task of importing fertilizers.

- Based on the proposal of the Ministry of Industry and Trade and the Ministry of Agriculture and Rural Development, the Prime Minister shall approve the list and annual import quotas for fertilizers for the provinces and some central enterprises. Import quotas for fertilizers shall be allocated once at the beginning of the year to ensure proactive transactions and signing of import contracts to ensure sufficient fertilizers and timely application during the production season.

- Under the guidance of the Provincial Party Committee Standing Committee, based on the import quota assigned, the Chairman of the Provincial People's Committee selects and assigns the import quota to provincial enterprises that meet the conditions to undertake the task of importing fertilizers and bear responsibility before the Prime Minister for the selection of enterprises and the direction of sufficient fertilizer imports as allocated to the province. In case of difficulties, the Provincial People's Committee must report to the Ministry of Agriculture and Rural Development and the Ministry of Trade to promptly take measures to ensure sufficient fertilizers for local production needs.

- Enterprises assigned to import fertilizers shall not buy, sell, or transfer import quotas under any form. In cases where enterprises are unable to fulfill the assigned fertilizer import quotas, they must promptly report to the Ministry of Trade and the Ministry of Agriculture and Rural Development to report to the Prime Minister for adjustment to other units to implement.

- Enterprises assigned the task of importing fertilizers shall not sell fertilizers directly from shipside or port to other organizations but must organize a sales agency system registered in provinces or through a sales agency system organized by the Provincial People's Committee and bear responsibility. Organizations and individuals with the necessary conditions, upon approval by the competent authority at the locality, must ensure capital safety for enterprises, unified and reasonable pricing management to serve timely agricultural production needs.

3. The Ministry of Agriculture and Rural Development shall lead and coordinate with relevant ministries to establish appropriate mechanisms to link rice and grain trade with fertilizer supply and other services serving agriculture to use capital resources reasonably and conduct effective business operations.

4. To ensure the regulation of fertilizer imports, enterprises assigned to import fertilizers must regularly report monthly and quarterly results of imports and fertilizer trade to the Ministry of Agriculture and Rural Development and the Ministry of Trade for monitoring and consolidation.

Monthly, leaders of the Ministries of Trade and Agriculture and Rural Development must jointly evaluate the results of fertilizer imports and trade and promptly take measures to guide localities in fulfilling their assigned tasks and report to the Prime Minister.

5. Importing fertilizers on deferred payment from abroad should be directed towards large fertilizer production groups worldwide with reasonable prices, through stable and long-term government-level trade contracts after approval by the Prime Minister. Importing enterprises must have import plans consistent with crop seasons and able to repay loans when due.

The State Bank of Vietnam shall lead and coordinate with the Ministry of Finance, the Ministry of Trade, and the Ministry of Agriculture and Rural Development to regulate and manage funds from deferred payment sales of imported goods by enterprises to ensure timely foreign payments. Immediately end the situation where enterprises importing fertilizers use deferred payment funds from abroad for other purposes not serving fertilizer and food trade.

After the Prime Minister approves the fertilizer import quota, the State Bank of Vietnam directs commercial banks to guarantee loans for designated enterprises importing fertilizers on deferred payment terms, using the value of imported fertilizer goods as collateral and deposit at the lowest level as stipulated by the State Bank of Vietnam.

For enterprises assigned to import large quantities of fertilizers to balance supply and demand and stabilize prices nationwide, in addition to general regulations, banks will provide loans and guarantees according to specific import volumes of each enterprise to enable them to achieve assigned targets. In cases of capital shortages, the Ministry of Planning and Investment and the Ministry of Finance will coordinate to request the Prime Minister's approval to use centralized state foreign exchange reserves for fertilizer imports.

6. The Minister of Government Organization and Cadres Affairs shall lead and coordinate with the Minister of Agriculture and Rural Development to dissolve the Vietnam Fertilizer Association and establish the Vietnam Fertilizer Importers Association, including importing and trading enterprises to help member enterprises effectively import and trade fertilizers, ensuring unified import prices and reasonable fertilizer selling prices for farmers.

Article 3. Ministers, heads of ministerial-level agencies, and provincial and municipal people's committees directly under the central government are responsible for implementing this Decision.