Dong Nai takes efforts to stabilize prices in remaining months of 2010

Rice prices have soared in recent times

Concern is growing that prices of essential commodities are soaring in Dong Nai province in the fourth quarter of this year. Price hikes in essential goods such as food and foodstuffs will have a great impact on the local market. In addition, the adverse impact of latest epidemic of blue-ear disease among pigs and weather-related disasters have badly affected the local market. Therefore, it is imperative for Dong Nai to launch price control measures.

Dong Nai has decided to spend about VND 63.7 billion for its price stabilization program which is the highest amount ever recorded in the province. The province kicked off the program in the middle of this months to stabilize prices of essential goods within this year.

6 enterprises and co-ooperatives including Dong Nai Food Industry Corporation (DOFICO), the Co.opMart Bien Hoa, the Co.opMart Tan Bien, Long Bien Trading & Service Cooperative, Tan Phu Trading & Service Cooperative, SaiGon Logistics Trading Joint Stock Company (SALOG JSC) have pledged to join the program ahead of the forthcoming traditional Lunar New Year holiday, or Tet. The province will offer preferential loans from the program to the participating businesses. Accordingly, DOFICO will receive a loan worth VND 26 billion, the Co.opMart Bien Hoa will get a loan worth VND 24 billion and the remaining amount will be granted to other 4 businesses.

Soaring food prices worry consumers in Dong Nai

The businesses have completed goods storage plans to meet customer demands. For instance, Bien Hoa Sugar Joint Stock Company has plans to provide the market with about 3,500 tons of sugar for the upcoming Tet holiday. SaiGon Logistics Trading Joint Stock Company (SALOG JSC) has also put 1,000 tons of rice in stock.

DOFICO says the company has signed contracts with livestock breeding farms in the province so that they can ensure sufficient food supply and low prices prior to the Tet season during which high demand often drives up prices although it has got no preferential loans from the price stabilization program.

Reported by Vi Lam