The Rice Policy and Management Committee will meet next week to work out measures to help rice farmers as rice prices are steadily sliding.
A farmer in Bang Len district of Nakhon Pathom, Mr Sompong Paengphan, said he planted only one crop this year because there was no water in the past seven months. Although rice price is not attractive, he had to sell his harvested crops anyway because he did not have storage facility and he was in need of hard cash.
Phisit Sa-nguankulchai, a rice miller in Bang Len district, said rice price fluctuated in accordance with market demand and exporters were the ones who could dictate rice prices.
Rice with 15 percent humidity could fetch between 7,700-7,800 baht per tonne.
It was reported that several rice millers had stopped buying paddies from farmers because they thought the price of the grains would further plunge downward.
Phisit also said the millers were not tempted by the government’s offering of a 3 percent interest refund for rice millers because they didn’t have the facilities to store rice.
He noted that the government’s clinching of 100,000 tonnes of rice deal with China did not help in pushing up rice price.
Meanwhile, Rice Exporters Association said the price of 5% rice was quoted at $369 per tonne on Wednesday compared to $372/tonne on October 5.
Rice Department chief Anant Suwannarat attributed rice price slump to two factors: too much humidity in the rice and too early arrival of new rice crops in markets.
Source: Thai Public Broadcasting Service (Thai PBS)