Vietnamese traders are accusing farmers of not honoring deals with them to sell their durians, seeking to sell the produce to others for higher prices instead. For instance, Van Hoa, a durian packaging and exporting company with a capacity of 100,000 tons a year, has lost out on many contracts recently.
"We committed early to pay VND60,000-80,000 (US$2.49-3.32) per kilogram, but close to harvest season traders came and offered up to VND100,000, which resulted in many farmers canceling their deals with us," Van Hoa director of foreign affairs Le Anh Trung said at a forum Monday.
Van Hoa therefore could not fulfill its export orders and has suffered losses on each shipment. The company has decided not to make early commitments to farmers in future, meaning there is no guarantee they will be able to sell their harvests.
Source: e.vnexpress.net