Amid reports of substantial acquisitions of young betel by Chinese traders, Nguyen Nhu Cuong, head of the Department of Crop Production under the Ministry of Agriculture and Rural Development, has cautioned farmers on over-cultivating betel at the detriment of other crops.
Cuong warned that widespread betel cultivation could lead to an oversupply crisis and emphasised the importance of keeping abreast of market trends.
He said this was not the first time Vietnamese betel has been in high demand, saying similar events took place several years ago in the Red River Delta and the Central Highlands.
"Traders have been buying betel through cross-border channels, not as part of any official trade quota between the two countries. Betel is not recognised as a major food source in Viet Nam, and the country currently has no planning for the production of betel," he said.
"It's important to remember it may take between three to five years to harvest betel. Farmers must remain very cautious about its future demand," Cuong added.
He said there has likely been a surge in demand for betel in the Chinese market, but it's just as likely to diminish in a near future.
"Betal does not belong in the category of major food sources such as rice, fruit and vegetable. Even the demand for betel in the domestic market is rather limited," he said.
"We have seen this many times in the past. Once traders stop buying, farmers will almost certainly have to deal with the aftermath,"Cuong said.
The department advised farmers not to abolish other crops to grow betel to avoid incurring potential financial losses.
In the event demand proves stable, farmers and local authorities should work together to build a proper plan for the development and production of betel, as well as to establish a trade protocol secured by long-term contracts and official export channels, rather than dealing directly with traders.
The department's official stand is to advise against growing betel in large numbers as it is not considered a food source.
A similar incident occurred last year with farmers in the Mekong Delta growing off-season dragon fruits. As traders abruptly stopped buying, farmers were left to suffer tremendous financial losses. — VNS