Thai Rice Stockpile Offers Some Relief

Aug 07, 2012 03:57 AM EDT | By Sharon Robinson

  • print
rice
Vietnam rice exports are going according to plan. The country may be able to export more than it initially expected. (Photo : flickr.com/Charles Haynes)

At a time when the world is reeling under rising food prices and a dwindling lack of supply to food demands, rice may be the grain to which everybody will turn to.

Major rice producing countries are set to reap a record harvest in rice. Thailand especially is hoarding a vast amount of rice, in an effort to combat the approaching food crisis.

Like Us on Facebook

As of July, Thailand bought 11 million tonnes of rice. According to predictions by the US Department of Agriculture (USDA), paddy fields will yield 1.1 million tonnes more milled grains. Benchmark 5 percent Thai white rice will drop 14 percent to $480 a ton by December 31, according to the median of 10 estimates from traders and analysts surveyed by Bloomberg.

The exports of rice, which is the staple food for half the world, may go up by 2.6 percent, the USDA further added. Thailand's rice hoard may be cut to make space for the next harvest. In other words, the rice shipments, along with Thailand's rice hoard, may offer some respite against low grain reserves.

"Rice is the only bright spot which is keeping us away from a global food crisis," Abdolreza Abbassian, a senior economist at the UN's Food & Agriculture Organization inRome, told the Bloomberg. "The corn situation is very worrisome, while with wheat, the overall supply situation is still adequate."

Rough rice futures is currently going for $15.92 per pound at the Chicago Board of Trade, after a rise of 7 percent.

Thailand has been able to expand its rice reserve, thanks to a rice pledging programme re-introduced by Prime Minister Yingluck Shinawatra. Although this programme is being blamed for the decline in Thai rice exports, and for Indian rice exports eclipsing Thailand, it has been able to boost the income of rural rice farmers.

Unfortunately this has made the price of Thai rice rather unattractive in the export market.

The country will continue buying rice and will only be selling some of its stockpile at the end of the year. But, to be able to sell it, the price would have to drop.

© 2015 Food World News. All rights reserved. Do not reproduce without permission.
Get the Most Popular Food Stories in a Weekly Newsletter
TrendingOn The Web
Food Biz
Starbucks Employees And Activists Protest Cuts In Health Care Benefits

Spotify And Starbucks Team Up For ‘Ecosystem’ Making DJs Out Of Baristas!

The Seattle-based company has prided itself on being "hip" over its decades of business and massive worldwide expansion, and that has long included its ambiance through music - now, only a couple of months after making the announcement they'd be leaving CDs behind in their stores, Spotify and Starbucks are now teaming up!

Jude's Ice Cream

Gin And Tonic Ice Cream Is HERE: Sipsmith Distillery And Jude’s Ice Cream Make Summery Cocktail Dessert!

While the United States is going through a health crisis due to the listeria outbreak in the past few weeks (which has mostly kept longtime ice cream makers Blue Bell in the country’s headlines), the United Kingdom sets itself up for the summer … with gin and tonic ice cream!

Body odor and bad breath

Why These Foods Can Make You Smell Horrible?

Do you wonder why some people stink? What you eat can directly affect on how you smell. Watch out for these foods that can make you smell bad.

Food Tech
How the MelCap System Works

Electronic Diet Pill In UK Tells Stomach It’s Full … Through Magnets

The fight against the obesity epidemic is real, and there are a few countries in particular (notably the United States, the United Kingdom and Mexico) where statistics of people suffering this disease have turned it into a major public health concern - which is precisely the logic behind the new electronic diet pill.

Nomacorc

Recyclable Wine Cork Is World’s First Carbon-Free Cork … Made From Sugar Cane!

As concern over the damage humankind is doing to the environment grows, more and more companies and individuals try to find new ways to make their habits more in tune with the planet for a sustainable way to live - and now, that includes the new recyclable wine cork.

Chef

The Top 10 Secret Weapon Ingredients from the Star Chefs

Just today, February 25, 2015, Yahoo! Food posts the secret weapon ingredients used by Star Chefs to achieve the most palatable dishes at home or in a restaurant. The said website revealed the top 10 magical ingredients that can turn home-cooked meals into top class restaurant tastes.

Real Time Analytics