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PROJECT “NETWORK FOR AGRICULTURE AND RURAL DEVELOPMENT
THINK-TAKS FOR COUNTRIES IN MEKONG-SUB REGION” (NARDT)

3.2.2. Lao PDR
Land Policy
As rice is an important crop for Lao PDR, the government has been regulated
several significant policies supporting rice production and commercialization in the
country. The significant policies related to the rice sector in Lao PDR are illustrated
in Table 22. Order No. 09/PM (2014), Order No. 01/LNT (2016), Agreement No. 980/
SYBL (2018) and Agreement No. 237/BKX (2020) are some of the main policies related
to rice land in Lao PDR. According to these policies and the agricultural development
strategy, the government prioritizes ten provinces, including Louang Namtha, Bokeo,
Sayyabuly, Vientiane, Vientiane Capital, Bolikhamxay, Khammouane, Savannakhet,
Salavan, and Champasak provinces, as the main -provinces of rice production for the
country’s food security. Additionally, rice fields in significant areas, particularly in the
irrigated areas, are protected by the restriction on rice land transformation in order to
ensure the stability of rice production areas.

As rice is critical to rural income and food security, the government regulates
the value chain for rice quite closely (e.g., setting price floors for farm gate paddy
rice purchases). Similarly, traders seeking to export rice must register with both the
national government and the provincial government. The Lao government is looking
to focus more on small farmers and invest in more research and extension. The Lao
government is also placing an emphasis on green and sustainable growing techniques.
The government has prioritized increasing rice production and exports with the
objective of increasing total paddy rice production to 5 million metric tons with 1
million metric tons of exports by 2025. The Lao government is focusing on increasing
irrigated acreage and improving seed varieties to meet its goal.

Irrigation Policy

For policies related to water, according to the law on irrigation, the government
invests in the irrigation system in the whole country, and all irrigation systems are
mainly supporting rice production. Although there are numbers of investments for
irrigation by private sectors, it is very little compared to the public investment (MAF,
2010b). In addition to this, there is research on groundwater for irrigation in Lao PDR,
which will provide sources of water for rural areas where surface water is insufficient
(ACIAR, 2017). This is the innovation for finding more sources of water for not only
rice production but also other agricultural products, particularly in the rural remote
areas where water is absent and insufficiency.

Crop Seed Policy

Together with these, the government highlights the importance of crop seed
according to decree no. 238/GOV, which supports seed development and production
for crops, including rice. According to this, the government invests in purified seed
production, including R1, R2, and R3. Within this, the government aims to ensure
R3 seed production covering 30 percent of the total rice production area. The
government also researched and determined the varieties (including traditional and
modern varieties) that are suitable for the conditions of all prioritized ten provinces
for rice production.

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