Tuesday, August 2, 2011

Thai rice dealers warn against gov’t price hike

August, 02 2011
VNS (Hanoi)

Thai rice exporters are looking for alternative sources of supply in Viet Nam and Cambodia in case the new government makes Thai rice prices too high for export

HCM CITY — Thai rice exporters are looking for alternative sources of supply in Viet Nam and Cambodia in case the new government makes prices too high for export.

The Thai Rice Exporters Association (TREA) has been crying foul about the newly-elected Pheu Thai’s announced policy to allow farmers to mortgage their entire harvest for 15,000 baht (US$500) a tonne for white rice and 20,000 baht ($660) for fragrant, or hom mali, rice, the English-language Bangkok Post newspaper reported.

The association’s vice president, Charoen Laothamatas, said if the mortgage programme was revived, the free-on-board price of hom mali would reach US$1,400 per tonne, even higher than the price of Indian basmati, currently the most expensive rice in the world.

“If Thai exporters cannot buy such expensive rice for export, they may opt for much cheaper rice from Viet Nam, Cambodia, or Burma as they must maintain their market bases and customers,” Charoen was quoted by the newspaper as saying.

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