Minister Le Minh Hoan: Reducing input costs is imperative

Many farmers knows to reduce input costs by choosing circular economic models, utilizing by-products in agricultural production.

At the 4th Prime Minister and Farmers Dialogue on May 29, in reply to farmers' concerns about the increasing prices of agricultural inputs and animal feeds, Minister of Agriculture and Rural Development Le Minh Hoan said that there are many approaches for farmers to save input costs.

“I have visited models in many areas. Many farmers have reduced input costs by following circular economy models, utilizing by-products in agricultural production. This approach has helped farmers significantly reduce the cost on fertilizers and agricultural materials”, Minister Le Minh Hoan shared.

In addition, the Minister said that farmers can participate in activities in cooperatives to purchase various types of agricultural materials in bulk and save costs as well as increase production efficiency.

“Furthermore, we need to gradually become self-sufficient in materials in the production of animal and aqua feeds, especially those that are being imported in large quantities. Reducing costs is imperative and can be accomplished with enough effort. The most important goal is to have an appropriate solution”, emphasized the Minister.

Regarding the rising commodity prices, Minister of Industry and Trade Nguyen Hong Dien said that the Government and ministries have made efforts to control price increases with special attention to strategic items that directly affect the composition of product costs. The Ministry of Industry and Trade has also studied guarantee policy on taxes and fees; and if the prices continue to escalate, the Ministry will propose a subsidy to support farmers.

However, Minister Nguyen Hong Dien emphasized that price slippage is a global problem, not exclusive to any country. Therefore, the Ministry of Industry and Trade will continue to study and advise the Government on the price stabilization of input products and materials.

Accordingly, the Ministry of Industry and Trade will work with businesses to have appropriate solutions for both sellers and buyers.

“According to our calculations, input materials account for 55% of the product cost, so with careful calculations, we can reduce the cost of raw materials. With this approach, businesses can share benefits with farmers as well as with the Government", informed the Minister of Industry and Trade.

Subsequently, the Ministry will continue to check and control the market, stabilize prices of commodities.

Thirdly, the Ministry will adjust taxes, especially value-added tax, tax refund, etc. so that taxes on essential items and supplies such as fertilizers can be reduced, alleviating difficulties for farmers.