Rice prices surge on supply drop

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Asian rice prices are on the rise due to lower supply from major exporting countries Thailand, India and Vietnam and large stock purchases by populous countries such as Indonesia and Nigeria.

While unseasonal rain over many rice-growing areas in southern and eastern India has delayed the harvest and affected world rice prices, Thailand is suffering from home-made problems overshadowing its global rice trade.

Thai rice export figure decreased 44 per cent in quantity and 32 per cent in value from January to September 2012. The export volume was recorded at just 5 million tonnes with a value of $3.5 billion. Exporters have blamed the government’s rice pledging scheme for the sharp drop in exports. Thai rice is being sold at higher prices than in the past. Prime Minister Yingluck Shinawatra’s policy to buy rice from farmers for 50 per cent more than the market price has hit the competitiveness of Thai exports.

According to Thai Rice Exporters Association, Thailand is in an unfavourable position as in the normal rice market, compared to competitors from India and Vietnam, Thai rice prices are higher than its competitors by around $120-140 per tonne.

Thai rice exports are expected to reach reach 7.5 million tonnes this year, down from last year’s 10.6 million tonnes, which will add further pressure on the prices. About 1.4 million tonnes have been sold under government-to-government contracts mainly to Gulf countries under special conditions.

In any case, Thailand has lost its position as the world’s leading rice exporter to Vietnam and India this year.

Indonesia is putting further pressure on rice prices as the government has said it needs to import 1 million tonnes of rice this year to secure an adequate stockpile. Indonesia has signed agreements with Thailand, Vietnam and Cambodia to import rice should the country need more.

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Reading Time: 1 minute

Asian rice prices are on the rise due to lower supply from major exporting countries Thailand, India and Vietnam and large stock purchases by populous countries such as Indonesia and Nigeria.

Reading Time: 1 minute

Asian rice prices are on the rise due to lower supply from major exporting countries Thailand, India and Vietnam and large stock purchases by populous countries such as Indonesia and Nigeria.

While unseasonal rain over many rice-growing areas in southern and eastern India has delayed the harvest and affected world rice prices, Thailand is suffering from home-made problems overshadowing its global rice trade.

Thai rice export figure decreased 44 per cent in quantity and 32 per cent in value from January to September 2012. The export volume was recorded at just 5 million tonnes with a value of $3.5 billion. Exporters have blamed the government’s rice pledging scheme for the sharp drop in exports. Thai rice is being sold at higher prices than in the past. Prime Minister Yingluck Shinawatra’s policy to buy rice from farmers for 50 per cent more than the market price has hit the competitiveness of Thai exports.

According to Thai Rice Exporters Association, Thailand is in an unfavourable position as in the normal rice market, compared to competitors from India and Vietnam, Thai rice prices are higher than its competitors by around $120-140 per tonne.

Thai rice exports are expected to reach reach 7.5 million tonnes this year, down from last year’s 10.6 million tonnes, which will add further pressure on the prices. About 1.4 million tonnes have been sold under government-to-government contracts mainly to Gulf countries under special conditions.

In any case, Thailand has lost its position as the world’s leading rice exporter to Vietnam and India this year.

Indonesia is putting further pressure on rice prices as the government has said it needs to import 1 million tonnes of rice this year to secure an adequate stockpile. Indonesia has signed agreements with Thailand, Vietnam and Cambodia to import rice should the country need more.

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