Rice exporters feel threatened

Business > Economics

Cheaper neighbours' supplies may be tapped

Published: 28/07/2011 at 11:06 AM
Newspaper section: Business

Thai rice exporters are already looking for alternative supplies from Vietnam and Cambodia in case the new government makes the price too dear for export, which could halve volume to only 5 million tonnes next year for a revenue loss of 60-70 billion baht.

The Thai Rice Exporters Association (TREA) has been crying foul for a while now regarding Pheu Thai's announced policy to allow farmers to mortgage their entire harvest at 15,000 baht a tonne for white rice and 20,000 baht for fragrant or Hom Mali rice.

Even though the party has said purchases would not start until November, rice prices have been rising each week since before the July 3 general election (see table).

This article is older than 60 days, which we reserve for our premium members only.You can subscribe to our premium member subscription, here.

About the author

: Writer: Phusadee Arunmas; Position: Business Reporter

Keep this article in your social bookmark:

Latest stories in this category:

Your comments

lillebror
Post : 41
Send message

Discussion 3 : 28/07/2011 at 12:32 PM3
Post this to my Facebook
Hm, maybe just to skip the export of rice . The new Goverment will focus on higly skilled labour and quality products to be exported, so whom cares about an export of 60-70 billion a year.
Soon Vietnam is taking over the rice production as they said 5 years ago, anyway.
Like dislike 0 people liked / 0 people disliked this comment
johninbkk
Post : 2,476
Send message

Discussion 2 : 28/07/2011 at 10:50 AM2
Post this to my Facebook
The optimal price point, at which Thai farmers will most benefit, is the market price. Nothing higher, nothing lower. By forcing the price too high, the PTP government will find themselves with tons of overpriced rice and no buyers. The proper way to increase profits for farmers would be to assist in improving efficiency, assisting during damaging droughts/floods, and assisting in finding international buyers.

And before anyone goes on an anti-PTP only rant, the Dem Party and it's partner BJT also promised higher than market prices during the election.
Like dislike 0 people liked / 0 people disliked this comment
nokor
Post : 95
Send message

Discussion 1 : 28/07/2011 at 06:59 AM1
Post this to my Facebook
Are these companies planning to print "product of Thailand" on the packages ALSO?
Like dislike 0 people liked / 0 people disliked this comment

Rice exporters feel threatened | Bangkok Post: business