Hanoi, Aug 12 - Vietnam has revised its projection for paddy rice output this year up 1.6 percent to 37.6 million tonnes, a state-run newspaper reported on Tuesday.
Export prices, which nearly trebled earlier this year due to global tight supply, have encouraged Vietnamese farmers to expand their planting acreage, leading to a higher output that enables the country to export more grain this year.
The 37.6 million tonnes would be achieved provided there were no major natural disasters or diseases attacking crops, the Agriculture Ministry-run Nong Nghiep Vietnam (Vietnam Agriculture) newspaper quoted the ministry's figures as saying.
The projection is above earlier government forecasts of 37 million tonnes and represents a rise of 4.7 percent from last year's rice production.
Vietnam's rice output would make up 5.6 percent of global paddy rice production this year of 667 million tonnes, based on figures of the United Nations' Food and Agriculture Organisation.
Last week, the government raised Vietnam's rice export target this year by around 2 percent to 4.6 million tonnes, reflecting higher output and also as it sought to arrest falling domestic prices.
Rice exports so far mainly go to the Philippines, Indonesia, Malaysia, Cuba and countries in Africa. Industry executives said more deals were expected with Iraq and Iran later this year. Vinafood 1 and Vinafood 2, the country's top rice exporters, have been ordered to buy a combined 500,000 tonnes of rice this month from Mekong Delta farmers to boost prices as the summer-autumn crop harvest has peaked.
The Agriculture Ministry said the Delta would turn out 20.2 million tonnes of paddy this year, or 1.6 million tonnes higher than last year.
The government also planned a minimum price for companies buying rice from farmers of 5,000 dong per kg, after prices have fallen by a fifth since their peak in early June.
Paddy stood at 4,300-4,500 dong (26-27.3 U.S. cents) per kg on Tuesday in An Giang, the Delta's main growing province, unchanged from Monday but 10 percent lower than July 12 while traders said the harvest has nearly ended in main areas.
Industry officials say Vietnam is capable of exporting 5 million tonnes of husked rice a year after retaining sufficient stocks to feed its 86.5 million people and for national reserves.
Last year, Vietnam exported 4.5 million tonnes, ranking the world's third-largest after Thailand and India.
It shipped a record 5.2 million tonnes in 2005.
Vietnamese exporters loaded 2.77 million tonnes so far this year, 3.5 percent below the same period last year, the Vietnam Food Association said.