Rice prices skyrocket in Thailand due to drought effects and export ban

[webfact]

Photo courtesy of tastythailand.com

 

A meeting is set to be convened today by Jurin Laksanawisit, Commerce Minister, evaluating the repercussions of the drought instigated by the El Niño weather occurrence, and potential courses of action in response to the surge in rice prices.

 

Concurrently, the Commerce Ministry under the watchful eyes of Wattanasak Sur-iam, chief of the Internal Trade Department, is monitoring good prices, with agricultural products of particular interest due to the effects of the drought.

 

“The price of bagged rice remains normal, despite recent news about a rise in rice prices following India’s ban on exporting non-basmati white rice and the drought reducing production,” Wattanasak conveyed. He mentioned that the price of a 5 kilogram bag of Thai hom mali rice averages 210 baht, while 100% white rice is priced at 117 baht per kilogram.

 

Several notable shopping centres are offering promotional discounts which reduce the prices of hom mali rice to around 165 baht in particular districts. Even though Wattanasak noted an increase in domestic prices, his department does not predict a significant impact on bagged rice prices.

Upon comparison with prices from the previous year, domestic prices of hom mali paddy are reportedly higher, from 14,499 baht to 15,000 baht per tonne and the price of white rice paddy has increased from 9,217 baht to 11,150 baht per tonne.

 

by Alex Morgan 

Photo courtesy of tastythailand.com

 

Full story: https://thethaiger.com/hot-news/economy/drought-effects-and-rice-export-ban-fuels-thai-domestic-rice-price-surge

 

-- © Copyright Thaiger 2023-08-07

 

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[Denim]

Rice prices skyrocket

 

Is this the start of Thailands space programe it has been talking about ?

[2baht]

14 minutes ago, webfact said:

The price of bagged rice remains normal

If the price goes up, this could be a turning point! ????

[save the frogs]

Rice is really great if you're really hungry and want to eat two thousand of something.

-- Mitch Hedberg

 

 

[loong]

4 hours ago, webfact said:

He mentioned that the price of a 5 kilogram bag of Thai hom mali rice averages 210 baht, while 100% white rice is priced at 117 baht per kilogram.

I don't think that anyone would pay 117 baht for a kilo of white rice!

Prices may be rising but I bet the farmers that harvest around November will see prices for paddy rice fall again

[hotchilli]

4 hours ago, 2baht said:

If the price goes up, this could be a turning point! ????

Lucky my daily diet doesn't rely on rice.

[StayinThailand2much]

'Rice prices skyrocket thanks to export ban'; yes, makes perfect sense! Do the traders charge local customers export prices now?

[rbkk]

Thai logic is a wonderous thing. When you can't sell (Export ban); put the price up. When I studied economics many moons ago if there was a supply glut the price went down. Not here!

[loong]

2 hours ago, rbkk said:

Thai logic is a wonderous thing. When you can't sell (Export ban); put the price up. When I studied economics many moons ago if there was a supply glut the price went down. Not here!

There isn't a supply glut.

I guess that India's export ban has pushed up global prices and created more demand for Thailand's rice. If Thailand exports more rice, there is less supply for the domestic market

[JensenZ]

5 hours ago, hotchilli said:

Lucky my daily diet doesn't rely on rice.

You're misinformed. If a diet did rely on rice, even at much higher prices, most people would save money. A kg of dry rice makes 2kg of food, about 3650 calories. I'm not suggesting you eat rice alone, but more rice in your diet will save you money. Other than pure lard, rice is the cheapest food per calorie.  

[spidermike007]

Perhaps they can add several kilos of rice to the payload for the next Thai rocket launch. At that point, they can truly say the rice has skyrocketed, while having the added benefit of being able to claim it has come back down. 

[kickstart]

1 hour ago, loong said:

There isn't a supply glut.

I guess that India's export ban has pushed up global prices and created more demand for Thailand's rice. If Thailand exports more rice, there is less supply for the domestic market

That is correct, it happened 10-12 years ago? a world shortage of rice a blip in the trade for a few months.

So, Thailand just exported more, just thinking how much money the exporters could make, and the rice price for the domestic market increased, a lot of people were not happy.

History about to repeat itself.