Thailand seeking to profit from a global food crisis

[webfact]

India, the world’s largest exporter of rice, has no plans to join any cartel, the type of which Thailand has tried repeatedly to set up (CGIAR Climate/Flickr)

 

The war in Ukraine has highlighted weaknesses in Thailand’s policymaking and prompted cartel behaviour … again.

 

by CRAIG KEATING

 

In response to worldwide supply chain issues caused by Russia’s invasion of Ukraine – who between them previously accounted for nearly one-third of global wheat supplies – the Thai government, headed by 2014 coup leader Prayuth Chan-ocha, is seeking to profit from the 45 per cent increase in the cost of the staple crop.

 

On 27 May, a government spokesman said Bangkok was talking with Vietnam to “raise rice prices … and increase bargaining power in the global market” – in other words, create a cartel. Thailand and Vietnam are, respectively, the world’s second and third biggest rice exporters after India.

 

It could not have come at a worse time for the world’s poor. The UN Secretary-General Antonio Guterres warned of heightened hunger and food insecurity in the wake of the wheat price rises. The Food and Agriculture Organisation says “historically high” food and energy prices put “the global harvest at risk”.

 

Full story: https://www.lowyinstitute.org/the-interpreter/thailand-seeking-profit-global-food-crisis

 

-- © Copyright LOWY INSTITUTE 2022-06-09

 

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[mahtin]

Gangstas.

[Denim]

4 minutes ago, webfact said:

It could not have come at a worse time for the world’s poor.

Unfortunately , the increased hardship of the worlds poor is not a consideration for those hoping to increase profits. Depressing to see such callous priorities at a time like this.

[Lacessit]

Every food-exporting nation in the world is looking to profit from the crisis, Thailand is just one of them.

[Henk Langeweg]

Shamefull behavior has no monopoly ....

[bkk6060]

Western countries are gouging their own citizens now at a record pace.

Those of use that are here are fortunate Thailand is a big food producer, at least plenty for those that are here.  

[topt]

Interesting article 

[matchar]

No worse than the OPEC+ cartel the whole world is dependent on.

 

But rice spoils so they can't hoard it to increase prices.

[Chongalulu]

No one is gouging,it’s simply the mechanics of supply and demand. When there’s a glut prices will drop below even the cost of production. Even the oil price went negative in the midst of the pandemic and oil producers lost billions. Swings/roundabouts.

[Pond Life]

The vast majority of rice is grown using fertiliser.
Fertiliser prices have increased dramaticly.

Fuel prices for farm machinery & transport have increased.

Of course rice prices have to go up or the farmers will be operating at a loss.

If they operate at a loss they will stop growing rice.

[garyk]

Not any worse than the US oil company's ripping off consumers here IMO.

Corp. America is greed on steroids..

 

Edited June 9, 2022 by garyk

[Iamfalang]

I own oil wells.

Houses

Supermarkets

Computer stores

 

COVID made me zillions.  

 

If I offered you 10 million baht, would you take it?   the entire world is designed to collect money.

while the sheep complain, the rich  get richer.  Why the sheep cry, the rich buy more hospitals for when the sheep get sick.........and then it's 100 million to be buried.  lol.  

 

[SpaceKadet]

Eisenhower was right when he famously said: "War is good for business".