Thailand Acts to Boost Rice Prices Amid Global Pressures

[webfact]

Picture courtesy: Wikipedia

 

In an effort to buoy the faltering rice prices within Thailand, the Commerce Ministry is rolling out a series of initiatives designed to stabilise and improve market conditions. As the nation grapples with external challenges influencing local rice rates, the ministry is proactive, unveiling seven targeted measures aimed at revitalising the rice market.

 

At the heart of the issue lies the international landscape, where India's return to the rice export scene and decreased purchases from major importers like Indonesia and the Philippines have contributed to downward price pressure.

 

As of recent reports, prices for Thailand's famous Hom Mali paddy have seen a modest rise to 15,500-16,500 Thai Baht per tonne, reflecting a yearly increase. In contrast, other varieties such as Pathum Thani and non-glutinous rice have faced significant declines, with prices dropping by 16% and 30% respectively.

 

To counter these trends, Commerce Minister Pichai Naripthaphan has set urgent measures in motion. An imminent meeting of the National Rice Policy and Management Subcommittee on Marketing will strategise support mechanisms for farmers hit by these pricing challenges.

This plan will then be refined and proposed to the National Rice Policy and Management Committee for final approval.

 

Central to the ministry’s strategy is the organisation of paddy market fairs across 20 provinces, particularly in the Chao Phraya River basin. These gatherings provide a direct platform for farmers to negotiate better rates, potentially increasing paddy prices by 100-200 Thai Baht per tonne.

 

The inaugural fair is already underway in Ayutthaya, with subsequent events scheduled through April.

 

Additionally, expanding Thailand’s export market remains a priority. Mr Pichai's upcoming visit to South Africa aims to finalise a deal to export 300,000 tonnes of Thai rice, valued at more than 5.25 billion Thai Baht. Negotiations are also in progress with China for a similar arrangement, aiming to alleviate domestic surpluses.

 

To further ease market pressures, the ministry has partnered with the Export-Import Bank of Thailand, offering financial support to rice enterprises. This initiative includes facilitating loans to businesses and export operators to boost purchasing and storage capabilities, thereby increasing demand.

 

Looking ahead, the ministry intends to enhance the global profile of Thai rice, featuring it prominently at the Thailand Rice Convention and exploring new markets like the US and Europe. Participation in international trade fairs will further bolster confidence in the quality of Thai rice.

 

"The path to recovery in rice prices is challenging, but with these strategies, we are confident in our ability to support our farmers effectively," assured Mr Pichai, reported Bangkok Post.

 

-- 2025-02-19

 

 

[hotchilli]

23 hours ago, webfact said:

In an effort to buoy the faltering rice prices within Thailand, the Commerce Ministry is rolling out a series of initiatives designed to stabilise and improve market conditions

Ahhhh here we go again.. 

[Confuscious]

Yeo, good to see that the Thaksin's are back in power and doing their RICE bussiness.

[ozz1]

How about another rice subsidy scheme Mr Thaksin that will fix it

[Muhendis]

1 hour ago, ozz1 said:

How about another rice subsidy scheme Mr Thaksin that will fix it

Not Thaksin but a good ploy to get his sister back. She has in depth experience of such schemes.

[blaze master]

On 2/18/2025 at 5:22 PM, webfact said:

As the nation grapples with external challenges influencing local rice rates,

 

You mean other countries growing better quality rice more effiecntly ?

 

Right. 

[spidermike007]

I'm sure that 100 baht per ton is going to make a huge difference to these farmers. 

 

Perhaps the moral to this story is don't grow rice! Find a 21st century alternative. All rice does is ensure a lifetime of poverty for the growers. 

[lordgrinz]

So the farmers want the government to initiate market manipulation in their favor, sounds like a good plan, not.