An eminent discussion instigated by Commerce Minister Jurin Laksanawisit is scheduled to transpire today, with a critical evaluation of the repercussions the current drought scenario, incited by the notorious El Niño weather phenomenon, poses to the steady rise in the price of rice. Simultaneously, the all-seeing eyes of the Commerce Ministry, under the custodianship of Mr. Wattanasak Sur-iam, the helm-holder of the Internal Trade Department, are subjected to the constant monitoring prices of goods, particularly those of agricultural products, whose stability has been rattled by the devastating effects of the ongoing drought.
Ironically, the current narrative upholds the bagged rice price as ‘normal’, despite the reverberating claims across newsrooms, forewarning a precipitous hike in rice prices subsequent to India’s stern imposition of a ban on non-basmati white rice exports, compounded by the drought’s calamitous bite on production. Mr. Wattanasak, in defence of this stance, declared that the prevalent price of a 5-kilogramme bag of the premium Thai hom mali rice remains a steady 210 baht, whereas the price insulation for 100% white rice rounds off to 117 baht per kilogram.
Notable shopping centres have taken it upon themselves to ease the price burden, offering promotional discounts that trim down the prices of hom mali rice to approximate figures of 165 baht in select regions. Mr. Wattanasak, accounting for the price elevation domestically, believes there won’t be a notable impact on bagged rice prices.
An analysis of a linear price progression of the domestic prices of hom mali paddy from the previous year chips in a higher range, registering a leap from 14,499 baht to15,000 baht per tonne. The price of white rice paddy too didn’t escape this increment, undergoing a hike from 9,217 baht to 11,150 baht per tonne.
Chookiat Ophaswongse, the honourable president of the Thai Rice Exporters Association, asserts how the shipping industry finds itself gridlocked amidst the rising global prices further intensified by the uncertainties streaking due to India’s ban on non-basmati white rice exports.
He highlighted how India’s strict stance towards the export of non-basmati white rice stoked the flames for domestic rice prices in Thailand. Reflecting on the prices, he stated how the price of 5% white rice came up from 17,000 baht per tonne the previous week to an elevated 19,500 baht, and the price of white rice paddy journeyed up from 11,000 baht a tonne to 12,500 to 13,000 baht.
Chookiat expounded on the conundrum faced by these traders, echoing the troubles exporters are currently having to procure rice amidst these tumultuous market conditions. He asserted, “Rice traders currently wrestle with the strenuous task of securing rice for delivery. Some have been advocating for shipment delays due to the market’s challenging disposition.”
He also speculated on the probability of India potentially selling rice under the conditions of a request based on humanitarian grounds or food security concerns. He ventured, “In a scenario where the Philippines places a request for 1 million tonnes of rice, it’s unsure how India would react, particularly in light of the quantity and price.”
While the situation remains to be on thin ice, Chookiat expressed hope for a positive sway on the horizon, if and when India decides to illuminate its obscure export policy.
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