Directive No. 25/2008/CT-TTg On Strengthening Guidance for Agricultural Product Consumption Through Contracts

DIRECTIVE

Regarding strengthening guidance on the consumption of agricultural products through contracts.

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More than five years since the implementation of Decision No. 80/2002/QĐ-TTg dated June 24, 2002 of the Prime Minister on policies to encourage the consumption of agricultural products through contracts has opened up a positive direction, helping agricultural production link with processing and consumption, attracting many businesses and farmers to participate. Through contracts for the consumption of agricultural products, enterprises have initially taken responsibility towards producers; farmers have had the opportunity to receive support in investment, technical measures, reasonable prices, thus being encouraged and reassured in production, with income gradually increasing; enterprises have been able to secure raw materials, expand production scale, and enhance competitiveness. In many localities, some sectors have formed good models linking farmers with businesses in production, processing, and consumption of agricultural products.

However, during the process of implementation, there remain limitations and shortcomings: many localities have not focused on strongly guiding the implementation of the Prime Minister's decision; businesses and farming households have not truly bonded and fulfilled their signed commitments; the proportion of agricultural products consumed through contracts remains very low (6-9% of rice production, less than 10% of aquatic product production, 2-5% of coffee area); businesses have not invested in raw material regions, failing to timely adjust contracts to ensure harmonious interests of farmers when prices fluctuate; in some cases, farmers do not sell or deliver agricultural products to businesses according to signed contracts; violations of contracts are not promptly and thoroughly addressed; disputes over purchasing and selling still occur even when contracts are in place.

To address these limitations and shortcomings, the Prime Minister requests:

1. The People's Committees of provinces and centrally-administered cities shall take the lead and coordinate with the Ministry of Agriculture and Rural Development and relevant ministries and sectors:

a) Review, adjust, and supplement in the development of new agricultural, forestry, aquaculture, and salt industry production planning; form large-scale agricultural product production areas, linking raw material production with processing industries and markets.

b) Ensure funding sources and integrate programs to implement projects related to agricultural production, processing, and consumption.

c) Implement well policies related to agricultural production, processing, and consumption such as investment policies for infrastructure construction, land, tax, transfer of advanced science and technology, extension services for agriculture, forestry, fisheries, and market information.

d) Guide and direct the consolidation of farmland and the development of cooperatives and groups participating in the consumption of agricultural products through contracts.

đ) Guide and mobilize farmers, businesses, cooperatives, and groups to implement agricultural product consumption contracts in accordance with Decision No. 80/2002/QĐ-TTg of the Prime Minister.

e) Guide parties involved in signing contracts to resolve disputes arising during implementation; promptly handle violations of agricultural product consumption contracts in accordance with the law.

2. The Ministry of Agriculture and Rural Development shall take the lead and coordinate with the People's Committees of provinces and centrally-administered cities and relevant ministries and sectors:

a) Continue to disseminate and promote laws and policies related to agricultural production and consumption through contracts.

b) Direct and guide reviews, supplements, adjustments, or the development of new plans for concentrated agricultural production areas linked with processing industries and consumption, guide and support the development of agricultural cooperatives and groups; link individual producers with farms and businesses.

c) Implement programs and projects on restructuring the rural economy towards comprehensive modern agricultural production.

d) Develop mechanisms to facilitate the work of agricultural extension, forestry extension, fishery extension, and programs and projects on crop seeds, forestry seeds, livestock seeds, and aquaculture seeds to support businesses and producers in signing and implementing agricultural product consumption contracts.

đ) Develop policies to encourage and create conditions for the development of cooperation models between agricultural producers and aquaculture producers with processing and consumption facilities, developing community organizations linking producers within sectors.

3. The Ministry of Science and Technology shall take the lead and coordinate with the Ministry of Agriculture and Rural Development and the People's Committees of provinces and centrally-administered cities to guide support for businesses and producers with agricultural product consumption contracts to apply and innovate to improve scientific and technological levels, borrowing medium and long-term capital from the National Science and Technology Development Fund of the Ministry and localities.

4. The Ministry of Industry and Trade shall take the lead and coordinate with the Ministry of Agriculture and Rural Development to guide the implementation of activities supporting the consumption of agricultural products through contracts and the establishment of regulations to handle contract violations in accordance with the Law on Commerce; guide other support activities from national trade promotion programs, national encouragement of small and medium-sized enterprises programs, and international economic integration programs.

5. The Ministry of Planning and Investment shall take the lead and coordinate with the Ministry of Finance, the Ministry of Agriculture and Rural Development, and relevant ministries and sectors to review and supplement support policies for infrastructure construction, balance support funds for programs and projects to build and develop large-scale production areas and concentrated raw material areas, especially for aquaculture and industrial crop planting areas.

6. The Ministry of Natural Resources and Environment shall take the lead and coordinate with the Ministry of Agriculture and Rural Development to guide the consolidation of farmland and land concentration to form large-scale production areas.

7. The Ministry of Justice shall provide legal assistance; promote and educate farmers about the law on implementing agricultural product consumption contracts.

8. The Vietnam Farmers' Association and industry associations shall publicize and mobilize members to properly fulfill the contents of signed contracts, protect the interests of members during the signing and implementation of agricultural product sales contracts.

The Ministry of Agriculture and Rural Development shall regularly monitor and summarize successful models for dissemination and expansion; promptly propose mechanisms and policies, solutions to promote the sale of agricultural products through contracts; inspect and urge the implementation of the Directive and report to the Prime Minister.

The Ministers, Heads of ministerial-level agencies, Heads of government-affiliated agencies, Chairpersons of provincial People's Committees under the direct jurisdiction of the central government, and Heads of relevant units and organizations are responsible for implementing this Directive./.