## Lộc Trời Clears the Air on Alleged Debt to Farmers in the Mekong Delta
In a press release issued on May 21, Lộc Trời announced that it had fully settled its debts to farmers in the Mekong Delta region for the 2023-2024 winter-spring crop.
The company is also undergoing financial restructuring to strengthen and stabilize its capital flow for production and business operations, with a focus on deeper involvement in the “1 Million Hectares of High-Quality Rice” project approved by the government.
For the 2023-2024 winter-spring crop, Lộc Trời signed contracts for linked production and interest-free investment in agricultural materials and services across more than 50,000 hectares of cultivation area in the Mekong Delta.
In mid-April 2024, Lộc Trời purchased over 300,000 tons of rice, totaling nearly VND 2,500 billion. In An Giang province alone, the company procured over 120,000 tons of rice, valued at nearly VND 1,000 billion. Over VND 2,000 billion has been paid to farmers in the region.
“There was a time lag in our payments, which caused inconvenience to our farmer partners. This issue arose due to some fluctuations from our rice buyers and the bank,” emphasized Lộc Trời’s representative. Despite their efforts, including selling dried rice at a lower price to prioritize debt repayment, the company still struggled to arrange funds promptly.
On May 20, Lộc Trời, in collaboration with Tiên Phong Commercial Joint Stock Bank (TPBank), completed the payment of the remaining rice purchase amount, fulfilling their commitment to the farmers and local authorities.
Mr. Huỳnh Văn Thòn, Chairman of Lộc Trời’s Board of Directors. Source: LTG
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On behalf of the company, Chairman Huỳnh Văn Thòn apologized to the farmers for the incident and expressed his gratitude for their understanding and the local authorities’ support.
Thế Mạnh
