Rice prices set to rise over rest of the year

However, there are still factors that could suppress prices, including the world economy, financial woes in some countries and uncertainty over the oil price, as it affects the purchasing power of some nations that import rice.
Duangporn Rodphaya, director-general to the Foreign Trade Department, said rice prices were expected to increase continuously in the coming months because of these factors, while global and domestic demand were unchanged.
She said that with the low supply of rice and stable demand, the government would carefully consider the management of its rice stocks and the release of rice, with about 10 million tonnes currently in state stockpiles.
With high demand, the government expects Thailand should break its rice export target of nine million tonnes this year.
The department reported that from January 1 to May 16, Thailand exported 3.9 million tonnes, up 18 per cent compared to the same period last year, while the value rose 11.8 per cent to Bt60.99 billion.
Duangporn said many countries in Africa such as Mozambique had approached the government to purchase rice on credit.
She said that to sell rice ion this manner required the Commerce Ministry to first speak with the Finance Ministry to ensure the government would be paid.
Any contract would be on a government-to-government basis.
Duangporn said the government may talk to business groups and banks to find the best method for selling rice.
But she said the government did not sell rice via barter or counter trade.