Rice stockpiles in Thailand will surge to a record this year driven by the government's price support scheme, according to the Food and Agriculture Organisation, which said the country may be running out of room to store the staple.
Milled holdings may jump 40% to 18.2 million tonnes in 2013, the Rome-based United Nations agency said in a report on Thursday on the global rice market. The reserves, which averaged 5.4 million tonnes a year between 2008-2010, have increased from 7.8 million tonnes in 2011, according to the report.
There may be a looming shortage of storage space, the agency said. Government stock-release plans have progressed slowly, further aggravating the supply situation for an export sector that is faced with little offshore demand, it said.
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