Govt pride at market manipulation misplaced

The government explained that it had not moved to sell all the stockpiled rice quickly for fear of lowering the price. Hence it is letting other countries sell rice first. It seems the government is behaving intelligently as a rice trader would – to push prices higher.

But, on the other hand, in the real-world competitive market where information is widely available, buyers are wise enough to seek rice from rice-exporting countries at a lower price. Even when they know there are not enough warehouses to support the government’s rice-pledging scheme, with the unprecedented borrowing of extra space from military camps and Don Mueang Airport.

Question: Who will rush to buy the government’s rice at an inflated price when buyers all over the world know the government has a huge stockpile?

It is difficult to say how long the government can play this game of stockpiling rice and raising the price. However, if it gets too fixated on its stockpile it runs the risk of the rice deteriorating. 

Sutipunt Bongsununt

Kanchanaburi