OAE urges govt to extend rice price stabilizing program

[webfact]

OAE urges govt to extend rice price stabilizing program

 

BANGKOK, 2 December 2016 (NNT) - The Office of the Agricultural Economics (OAE) suggested that the government extend its assistance for rice farmers until August next year, enabling farmers to sell their grains at 9,500 baht per ton. 

OAE Deputy Director Poomsak Rasri said the government’s rice price stabilizing program, which will come to an end February next year, should be extended given the amount of grains remaining in stockpiles. He said the producers will not be able to sell all their grains before the program expires. 

He claimed that more time is needed for the program as there is a global factor at play, saying global rice supplies have now outpaced global market demand to the point where Poomsak believes could further bring prices of rice in Thailand down. Despite the trend, Poomsak speculated that prices of Jasmine and unrefined Jao rice grains will stay the same at 8,000 baht and 7,000 baht per ton respectively. 

The OAE Deputy Director believed that rice prices could reach as high as 9,500 baht a ton if the program continued until August next year. However, on a short-term basis, he urged the government to maintain the rice quality in the market. As for long-term measures, the government should focus on increasing transportation and marketing distribution channels.

 

-- nnt 2016-12-02

 

[Emster23]

Hmmm so this is not meddling with the marketplace like Yingluck did, but still not facing reality of the marketplace & having Thai taxpayers (there must be a few of them) pick up the tab.

"The OAE Deputy Director believed that rice prices could reach as high as 9,500 baht a ton if the program continued until August next year".... and on what basis if there is oversupply or under demand? Consult fortune teller? 

[Brer Fox]

Given the problems they have had this year and last and the growing stock piles it will be interesting to see what happens next season. 

In the meantime India and Vietnam are getting their export and production acts together and will likely be even tougher competitors into the future.