Salt is harvested in Ly Nhon Commune in HCM City's Can Gio District. — VNA/VNS Photo Manh Linh

HCM CITY (Biz Hub) — Nine companies have registered to buy all 95,000 tonnes of salt inventory from farmers in HCM City's Can Gio District, according to the city's Department of Agriculture and Rural Development.

Tran Ngoc Ho, deputy director of the department, said that salt trading companies would pay a price that would provide a profit equal to 30 per cent of farmers' production price.

Earlier last month, the city's People's Committee told the departments of Agriculture and Rural Development as well as Industry and Trade to ask several companies to buy salt from farmers in Can Gio District.

The farmers had a good harvest in the 2015-16 salt producing season but faced a price decline, resulting in extra salt in stock.

Companies that buy salt from farmers will receive a 60 per cent reduction on interest rate of loans. The purchasing period will end on October 1.

In the 2015-16 salt producing season, Can Gio farmers produced more than 140,000 tonnes, according to the district's People's Committee.

Of the figure, farmers have sold more than 45,000 tonnes, including 6,000 tonnes purchased by salt trading companies.

The price of salt fell from VND60,000 (US$2.7) per 100 kilos at the beginning of this year to VND20,000 ($0.9) per 100 kilos at the end of last month.

Huynh Khanh Duy, who produces salt in an area of 4ha in Can Gio's Ly Nhon Commune, said he had harvested about 400 tonnes of salt in the 2015-16 salt producing season.

Duy said he had sold only 50 tonnes because of low prices and had to store the remaining salt to wait for an increase of price.

With a coastline of 23 km, Can Gio has favourable conditions for making salt. The district has 727 households that produce salt on a total area of 1,671 hectares.  — VNS