Drought sparks rice cost surge

A male arranges sacks of rice during a room in Suphan Buri province. The drought and low supply have driven rice prices to a two-year high. THITI WANNAMONTHA

Thai rice prices have soared to a two-year high on approaching reduce supply in light of widespread drought conditions.

According to Chookiat Ophaswongse, an titular boss of a Thai Rice Exporters Association, prices for all forms have risen. The cost for 5% white rice is quoted during US$424 a tonne, adult from $397 in April, and a cost for gluey rice is quoted during $900 a tonne, adult from $867 final month.

The free-on-board trade cost for Hom Mali perfumed rice remained fast during $795 a tonne.

Mr Chookiat pronounced a swell of gluey rice in sold had acted to reduce domestic prolongation as Thai farmers shifted to flourishing some-more Hom Mali rice due to aloft direct from China, as good as Indonesia and Malaysia forward of Ramadan.

The Islamic fasting month starts Jun 6 and continues for 30 days until Jul 5.

Commerce permanent secretary Chutima Bunyapraphasara pronounced rice prices are in a rising trend since of reduce tellurian supply and a drought, that is approaching to beat dual vital rice producers, India and Vietnam.

She pronounced a border of a cost increases would count on a impact of drought conditions in those countries.

In a associated development, interjection to approaching reduce supply, a government’s latest rice auction for 1.2 million tonnes drew active appearance from intensity buyers.

Duangporn Rodphaya, director-general of a Foreign Trade Department, reported yesterday that there were 51 competent bidders.

The dialect will announce a formula tomorrow (May 19).

The rice put adult for a latest auction was partial of an existent 11.4 million tonnes in state stocks. The National Rice Policy Committee, chaired by Prime Minister Prayut Chan-o-cha, had greenlighted a rice for auction late final month, following a offer by a Commerce Ministry. The rice is projected to fetch during slightest 100 billion baht.

The 11.4 million tonnes is a brew of Grade C, that is categorised as bad peculiarity for industrial use; Grade P, that upheld method certification; and Grades A and B, definition in somewhat bad condition and in need of classification for improvement.

The sales devise especially entails ubiquitous auctions on a room basis. It is divided into 3 categories formed on a commission of Grade C rice in a brew in any warehouse.

Get full Bangkok Post printed journal knowledge on your digital inclination with Bangkok Post e-newspaper. Try it out, it’s totally giveaway for 7 days.

Article source: http://www.bangkokpost.com/business/news/977285/drought-sparks-rice-price-surge

Leave a Reply