Rising costs squeeze farmers, VFA urges temporary stockpiling to support paddy prices

According to the Ministry of Industry and Trade’s fuel price adjustment on March 7, RON 95-III gasoline rose to VND 27,047 per liter (up VND 4,707); E5 RON 92 reached VND 25,226 per liter (up VND 3,777); 0.05S diesel climbed to VND 30,239 per liter (up VND 7,202); and kerosene increased to VND 35,091 per liter (up VND 8,490).

Diesel, essential for powering farm machinery used in land preparation, harvesting and transport, has a direct impact on production costs, particularly as the 2025 - 2026 winter–spring rice crop enters peak harvest.

Farmers across the Mekong Delta are now harvesting under dual pressure: falling paddy prices and rising input costs.

In Can Tho, more than 312,600 hectares were planted this winter–spring season, with nearly 93,000 hectares harvested to date.

Vo Huu Phuoc, a farmer in Truong Thanh commune, has just harvested 5 cong (about 1,300 square meters per cong), yielding roughly 1.1 metric tons per cong. Traders purchased his Dai Thom 8 paddy at VND 5,800 per kilogram, down from VND 6,000 per kilogram agreed just a week earlier.

Phuoc said all his farmland is leased, and with rising input and labor costs alongside falling prices, profits this season have dropped sharply year-on-year. He plans to return the land and stop growing rice in the upcoming summer–autumn crop.

Le Van Thien, also in Truong Thanh commune, farms 34 cong of rice land, including 27 cong under lease. Although yields are up by about 200 kilograms per cong compared to last year, prices have declined from VND 6,000 per kilogram (pre-Tet deposits) to VND 5,800.

“If you farm your own land, you might still make a small profit, but with leased land, margins are negligible,” Thien said. “If prices fall below VND 5,500 per kilogram in the 2026 summer–autumn crop, I’ll skip the autumn–winter season to avoid losses.”

Elsewhere, in Dong Thuan commune, yields remain strong and prices are slightly higher at around VND 6,000 per kilogram. Still, farmers are discouraged by soaring fertilizer and fuel costs.

Duong Van Sieu reported yields of about 1.3 tons per cong, but noted that prices are VND 1,000 per kilogram lower than last year’s winter–spring crop.

He added that fertilizer dealers have announced across-the-board price hikes ahead of the next planting. “DAP Ca Mau is now around VND 830,000 per 50-kg bag, up roughly VND 300,000, while DAP Hong Ha is between VND 1.6 million and VND 1.8 million per bag,” Sieu said. “To stay profitable, we have to cut input use. Previously, we applied fertilizer three times per crop at about 15 kg each time; next season, we’ll reduce that to 10 kg per application.”

Service providers are also feeling the strain. Ho Tu Hai, a combine harvester operator from An Giang working in Can Tho, said diesel prices for harvesting machinery have fluctuated sharply since the Lunar New Year, rising from VND 18,000–23,000 per liter to over VND 30,000 per liter.

Fuel access has also tightened. “We used to stockpile 500–1,000 liters of diesel on barges, but now gas stations limit sales to about 150 liters per day,” Hai said. His machine consumes roughly that amount daily to harvest around 50 cong.

“It’s peak season, and we have to keep moving across different routes. Having to buy fuel every day is very inconvenient, but we must keep operating because we’ve signed contracts with farmers,” he said.

Rising fuel costs are also pushing up harvesting and transport fees. Trader Mao Van Tin in Can Tho said combine harvesting rates have increased from VND 320,000 to VND 350,000 per cong, while river transport costs have risen by VND 10,000–20,000 per ton.

In practice, moving paddy from fields to drying facilities, mills and storage warehouses all depends on fuel. As logistics costs climb, they are ultimately factored into product prices, placing further downward pressure on farmgate paddy prices.

Addressing the issue, Do Ha Nam, chairman of the VFA, said Vietnamese firms have been actively expanding export markets, particularly in Africa and China, with rice exports in the first two months of 2026 up more than 50% year-on-year.

However, the winter–spring crop poses a risk of export oversupply if overseas demand weakens.

To reduce risks and prevent further price declines, Nam said authorities should consider asking enterprises to participate in temporary stockpiling. This would avoid flooding export markets while helping stabilize domestic paddy prices.

“Paddy prices are already too low,” Nam said. “The VFA has reported to the Government, the Ministry of Industry and Trade, and the Ministry of Agriculture and Environment to seek support and implementation measures.”

VFA leaders also urged the government to place greater emphasis on government-to-government contracts, which have played a key role in stabilizing rice prices in previous years.

For businesses, Nam called for continued market expansion and new export contracts to boost procurement and improve prices. He also emphasized the critical role of banks in providing financing to support enterprises in purchasing and stockpiling rice during this difficult period.