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Vietnam's rice output will fall to 35.8 million tonnes this year from an earlier expected volume of 36.9 million as Typhoon Damrey, which swept through Vietnam last month, destroyed crop in large areas, a government adviser said.

After the drop, output in 2005 would be still be about the same as last year, Vo-Tong Xuan, professor at Angina University, told Reuters on the sidelines of a rice conference, referring to a report from Vietnam's Ministry of Agriculture.

But the typhoon would help the crop to rebound to 36 million tonnes in 2006 as it brought nutrients for the soil. Farmers would begin planting its main crop in two weeks, Xuan said.

The world's number two rice exporter this month recommended its exporters to stop signing new contracts until the end of November on worries over possible shortages.

Over the past two weeks, Xuan said, the government had brushed aside requests for resuming exports by the industry, which said there were still 1 million tonnes of rice in excess despite plentiful exports so far this year.

Asked about exports, Xuan said it would reach a record of about 4.8 million tonnes, up from 4.06 million tonnes last year, with 4.6 million tonnes shipped by October.

"Floods are receding, with high level of nutrients from the river, we expect to have a good crop again," he said. Xuan said higher yields should help Vietnam harvest a larger output next year, despite a likely decline in acreages.

Farmers are growing other crops, such as fruits, soybeans and corn for raising their incomes. In a surprise move, Xuan said the country was shipping 90,000 tonnes of ordinary rice to Japan, which officially recognised its quality last month.

Copyright Reuters, 2005


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