Commerce Ministry to hold meet over low domestic rice price
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THE Commerce Ministry will this week call for a meeting with rice exporters, millers, and traders to try and solve the problem of the rice price falling domestically despite the higher export price for rice and stronger demand globally due to drought incl
Commerce Minister General Chatchai Sarikulya said the domestic rice price should increase soon because of the widespread drought.
“The price of rice domestically |should reflect the export price, with |the price of white rice increasing |gradually from higher demand amid drought in many countries, mainly in Thailand, China, and Vietnam,” said Chatchai.
He said that the ministry would ask traders to buy rice from farmers at a fair price and one that reflects market demand.
Chatchai added that with lower rice supplies in the world market, Beijing has urged Thailand to accelerate the supply of rice to China under a government-to-government agreement.
“Thailand should be able to export 10 million tonnes of rice this year as more orders will come from drought-hit nations,” he said.
The Thai Rice Exporters Association reported that Thailand shipped 3.77 million tonnes of rice in the first five months of the year, down 1.4 per cent on the same period last year, while the value dropped 2.7 per cent year-on-year to Bt61.36 billion.
However, shipments in May were up by 7.3 per cent in volume to 945,597 tonnes, while the value rose 2.3 per cent to Bt14.11 billion.
As of June 24, the export price for 5 per cent white rice was US$380 (Bt1,284) a tonne, up from $373 a tonne the previous week.
Last week, the price of 5 per cent white Vietnamese rice was $355, and Indian rice was $370 a tonne.
The Thai Rice Millers Association reported that the price of white paddy rice was between Bt7, 500-Bt8,000 a tonne last week.
