Principles for Investigating and Determining the Production Costs of Commercial Rice

Accordingly, Circular 77 stipulates that when investigating, surveying, compiling investigation data, determining production costs, calculating the actual production cost of paddy rice, and estimating the average production cost of paddy rice, the following principles must be adhered to:

- Conduct investigations, surveys, and compile investigation data based on the following grounds:

- The production level and conditions, specifically: Production scale, technical facilities, material supply conditions; quantity and quality of labor; ecosystem, farming system, intensive cultivation level, degree of application of scientific and technical advancements, level of infrastructure autonomy, and the difficulties and advantages in the production and consumption process;- The economic-technical norm system: Based on the economic-technical norms issued by the competent authority to guide application at the surveyed site, including: Investment norms for seeds, fertilizers, pesticides, irrigation norms, labor investment norms, and other related norms (if any). In the absence of economic-technical norms, the costs stipulated are used for calculation purposes;- Documentation, interviews, direct investigation, and verification from organizations (if any), production households, and workers;- Maximum statistical data for the previous 03 consecutive years;- Market prices at the time or nearest to the time when production costs and the price of paddy rice need to be determined.

- Production costs and the production cost of paddy rice are calculated based on the actual production survey results of each paddy rice production household and by averaging the data using the weighted average method.

- The estimated average production cost of paddy rice is calculated based on the actual average production cost of paddy rice for the entire production area and the projected Consumer Price Index (CPI) for the whole country for the planned year as announced by the National Assembly.

See details in Circular 77/2018/TT-BTC, which is effective from October 01, 2018.

-Thao Uyen-

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