The 2025-2026 winter-spring rice crop in Dak Lak has been considered a successful season, with both yield and output recording increases. However, farmers are currently facing “bumper harvest, falling prices” dilemma as rice prices have dropped to lowest level in past decade.

Sharp decline in rice prices

According to data from provincial Department of Agriculture and Environment, total winter-spring rice cultivation area across province this year reached 76,752 hectares, fulfilling 102.34% of planned target. Average yield is estimated at eight tonnes/hectare, up 0.3 tonnes compared with previous crop, bringing total output to around 614,020 tonnes, an increase of more than 29,500 tonnes. However, sharp decline in rice prices has become a major concern for farmers.

Despite a bumper harvest, farmers suffering income losses during the 2025-2026 winter-spring rice crop as paddy prices fell sharply.

Mr. Ho Thanh Hung, Director of Quang Tan Agricultural Services Cooperative, said cooperative cultivated 665 hectares during this winter-spring crop, mainly with ST25 rice variety, known for high productivity and strong market demand. Nevertheless, fresh rice prices currently stand at only 6,800 VND/kilogramme, down 3,000 VND compared with previous years. Meanwhile, prices of agricultural inputs, labour and harvesting services have all increased by around 10% year-on-year, leaving farmers with almost no profit.

Similar situation is also unfolding in Dak Lieng Commune, one of provincial key rice-growing areas with nearly 5,000 hectares planted with high-quality ST24 and ST25 rice varieties. Ms. Vu Thi Thu, a resident of Me Linh 1 Hamlet in Triet Village, Dak Lieng Commune, lamented that rice prices have fallen to lowest level in nearly 10 years, fluctuating between 6,000-7,000 VND/kilogramme. As an outcom, farmers are suffering losses estimated at around 40 million VND/hectare.

Promoting green production mindset

With favourable climate and soil conditions, rice cultivated in western Dak Lak consistently delivers high yields, leading Central Highlands region alongside superior quality compared with numerous lowland farming areas, creating a distinct competitive edge for local rice products. However, due to the absence of export-processing facilities, most paddy output is purchased by traders from Mekong Delta provinces, leaving prices heavily dependent on intermediary buyers.

Farmers facing the recurring challenge of “bumper harvests but falling prices” as paddy prices have dropped to their lowest level in the past decade.

According to Mr. Ho Thanh Hung, Director of Quang Tan Agricultural Services Cooperative, reliance on this distribution channel has exposed farmers to price suppression, unfair competition and a lack of long-term stability. Cooperative is currently seeking solutions to establish direct consumption linkages and sign partnership agreements, enabling farmers to feel more secure throughout production cycle, from sowing to harvest.

Dak Lak is home to numerous cooperatives operating in rice production, yet most value-chain linkages have yet to achieve expected large-scale development. Local milling facilities largely remain limited to processing conventional rice varieties for provincial and neighbouring markets. Concurrently, high-quality rice segments such as ST24 and ST25 still lack processing plants capable of deep processing and value enhancement. As a result, local farmers mainly participate in raw production stages, making it difficult to establish integrated and sustainable value chains.

Major rice-growing areas across province are now promoting “four-party linkages” involving farmers, businesses, scientists and State agencies to address recurring challenge of bumper harvests accompanied by falling prices. Enterprises are participating throughout entire supply chain, from input provision to product off-take, helping farmers stabilise production. In long term, province is encouraging and creating favourable conditions for cooperatives and enterprises to pilot concentrated clean-rice and organic-rice models, while fostering green production thinking to strengthen sustainable positioning of local rice brands.

Translated by HAI LOAN