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.

© 2014 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
Avocado, papaya and pineapple are some of the foods that can help you fight bloating and help you flatten your stomach.

Fight Bloating And Flatten Your Stomach With These Foods

Everyone loves to have a flat stomach. But unfortunately for some, this task is so hard to do. After a night of partying, drinking, and eating, bloating usually happens next. But how will you deal with bloating to flatten your stomach?

Alcohol is a toxic substance that reaches your baby through the bloodstream going to the placenta.  The more you drink alcohol during your pregnancy, the greater is the risk for your baby.

Alcohol During Pregnancy, Is It Safe? How Much Is Too Much?

Drinking alcohol during pregnancy has a potential risk of harming your baby. Although some health professionals may say it is fine to drink occasionally, still a lot of doctors advise not to drink because there are no known quantities that are considered safe.

Banana is a rich source of nutrients that can solve a lot of body conditions and prevent risk of developing heart problems.

Surprising Reasons Why You Should Eat Banana Everyday

Banana is a staple fruit that comes readily available no matter what time of the year. It is sweet, versatile, and yes a powerful fruit that provides nutrients no other fruit can offer.

Food Tech
Starbucks Introduces Wireless Chargers In 200 Stores

Starbucks Introduces Wireless Chargers In 200 Stores

Starbucks Wireless Chargers – Starbucks announced that from Tuesday, there would be 200 stores in the San Francisco Bay Area which count with wireless charging spots.

Lee Memorial Health System

Food Means Medicine, Lee Memorial Health System Improves Cafeteria

The Lee Memorial Health System has announced that they believe food is very important in the recovery of patients in their hospital so they are really working on making their cafeteria be different and defy the generalization of people that hospital food is not really appetizing.

RMAX YAMAHA

Grape Growers Might Use Drones For Planting

Grape growers might be using drones in order to explore any potential that technology might bring in order to do agricultural chores such as crop spraying, irrigation and monitoring.

Real Time Analytics