Sign up | Log in



Home  >>   Daily News  >>   Thailand News  >>   Commodities  >>   New Thai rice program causing global instability
NEWS UPDATES Asean Affairs                    26  September 2011

New Thai rice program causing global instability

Related Stories

September 13, 2011
Thai rice plan to distort market

July 28, 2011
New price scheme threatens Thai rice exports

July 21, 2011
Rice hoarding starts in Thailand

May 7,2011
Thai rice to slow down for election

March 12,2011

Thai rice farmers want guarantees

July 6,2010
Banpu eyes takeover of Australia's Centennial

December 15, 2009
Thai leather industry anticipates rebound in 2010

November 7, 2009
Philippines to import rice from Vietnam and Thailand

July 23, 2009
India’s Tata to open new $112mn furnace in Thailand

A populist policy aimed at boosting the incomes of Thai farmers has raised fears of global rice price turbulence, and experts say the kingdom could just be hurting itself.

Thailand, the world’s biggest rice exporter, has vowed to boost the minimum price farmers receive by buying unmilled rice directly at 15,000 baht ($485) per metric ton starting in October. The current price is about 10,000 baht.

The move, part of an array of promises that helped propel former Prime Minister Thaksin Shinawatra’s sister and allies to victory in a July election, has fueled speculation that world prices could surge.

Rice is the staple food for more than 3 billion people, about half the world’s population, and Thailand produces about one-third of global exports, with China, Bangladesh, the Philippines, South Africa and Nigeria among its major customers.

The rice export price has jumped from $500 per metric ton in early July to around $600 as Thai farmers withheld stocks to take advantage of the rice deal, according to analysis from Capital Economics.

The Thai Rice Exporters Association, concerned that the country could lose its position as the biggest global exporter, has warned that prices could hit $800 per metric ton.

Vichai Sriprasert, head of Riceland International, said last week the move could push Thai prices “higher than anybody.”

“Any government in the world when they subsidize their commodities (it is) to be more competitive, but Thailand just did the opposite,” he said.

The United States Department of Agriculture predicts Thai exports, projected at 10 million metric tons this year, will slump by 20 percent in 2012, although global trade is predicted to drop just four percent from a 2011 record high.

In a report earlier this month, it said Vietnamese exporters had already used their competitive advantage over Thailand to up sales, leading to a 4 percent rise in their price quotes since August as supply tightened.

At a recent meeting in the northern Thai city of Chiang Mai, export representatives from Thailand and Vietnam — the world’s second biggest supplier — warned of the effect on consumer prices.

“Vietnam is worried that the high price of Thai rice will cause their rice for domestic consumption to increase,” said Chookiat Ophaswongse of the Thai Rice Exporters Association, referring to Vietnam’s double-digit inflation.

A report from Famine Early Warning Systems Network last month said Asian rice prices had risen “significantly” since July, driven mainly by the Thai government proposal.

The report said the bill for the scheme could be high, which suggests “the government will be keen to pass at least some of the cost to consumers. But it also suggests that the scheme may not be in place for very long.”



Reach Southeast Asia!
10- Nations, 560- Million Consumers
And $1 -Trillion Market
We are the Voice of Southeast Asia Media Kit
The only Media Dedicated to Southeast Asia Advertising Rates for Magazine
  Online Ad Rates

Comment on this Article. Send them to

Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below




1.  Verifier

1. Verifier

For security purposes, we ask that you enter the security code that is shown in the graphic. Please enter the code exactly as it is shown in the graphic.
Your Code
Enter Code

Today's  Stories    26  September  2011 Subsribe Now !
• Asean markets down Subcribe: Asean Affairs Global Magazine
• Militant role in Sunday church bombing Asean Affairs Premium
• Indonesians are top Twitters
Research Reports
on Thailand 2007-2008

•Textiles and Garments Industry

•Coffee industry

•Leather and footwear industry

•Shrimp industry

• New Economic Model has challenges 
• Philippine manufacturing down in August
• Singapore-Russia trade hits high
• New Thai rice program causing global instability 
• Taxpayers could be hit with rice bill pp

Asean Analysis              26  September  2011

Advertise Your Brand
• Asean commodity prices cause global waves Sponsor Our Events

Asean Stock Watch   26  September  2011

• Asean Stock Watch-September 26 p

ASEAN NEWS UPDATES      Updated: 04 January 2011

 • Women Shariah scholars see gender gap closing
• Bank Indonesia may hold key rate as inflation hits 7 percent

• Bursa Malaysia to revamp business rules
• Private property prices hit new high in Singapore
• Bangkok moves on mass transport
• Thai retailers are upbeat
• Rice exports likely to decline
• Vietnamese PM projects 10-year socioeconomic plan


This year in Thailand-what next?

AseanAffairs   04 January 2011
By David Swartzentruber      

It is commonplace in journalism to write two types of articles at the transition point between the year that has passed and the New Year. As this writer qualifies as an “old hand” in observing Thailand with a track record dating back 14 years, it is time take a shot at what may unfold in Thailand in 2011.

The first issue that can’t be answered is the health of Thailand’s beloved King Bhumibol, who is now 83 years old. He is the world's longest reigning monarch, but elaborate birthday celebrations in December failed to mask concern over his health. More


Home | About Us | Contact Us | Special Feature | Features | News | Magazine | Events | TV | Press Release | Advertise With us

Our Products | Work with us | Terms of Use | Site Map | Privacy Policy | Refund Policy | Shipping/Delivery Policy | DISCLAIMER |

Version 5.0
Copyright © 2007-2015 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand