Thailand to Sell Rice, Price is Stumbling Block

Aug 21, 2012 05:26 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)

Thailand will be selling 753,000 tons of rice from its vast stockpile next week, reports Reuters. The move will be an effort to make space for more rice in the October season.

Thailand has been building up a vast rice stock in the hope that it can export  when all the other exporters have exhausted their surplus stocks. The stockpile is the result of a rice-pledging scheme by the government, in which the government buys rice from farmers above the market price. The program was introduced to help farmers get a better price for their rice stocks. Currently, the Thai government is paying farmers 15,000 baht ($470 U.S.), whereas the market price is 9,000 baht ($285 U.S.).

Like Us on Facebook

Thailand has nearly 10 million tons of milled rice in its yards.  However, the price of Thai rice is higher than Indian and Vietnamese rice. Many rice importers have been looking to India and Vietnam to meet their rice demands. Thailand is slowly losing its position as the top-exporter.

It seems Thailand still has faithful buyers and Commerce Minister Boonsong Teriyapirom claims that the country has sold 2 million tons of rice to China, while another million will be sold to Indonesia, reports Reuters.

The report adds that Vietnam too is looking to sell at least 500,000 tons of rice to Indonesia at a lower price. Chances are that Indonesia may opt for Vietnam rice.

Traders have been complaining that the government does not seem to have sold any rice at all. High prices have also been a source of their anger. According to a report in Bloomberg the price of Thai 5 percent white rice is likely to drop by December, thereby increasing sales. Rough rice futures are currently going for $15.55 per pound at the Chicago Board of Trade.

© 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
Philadelphia Area Taco Bell Restaurants Close Following E. Coli Warning

Taco Bell Menu Gets Absurd With ‘Naked Crispy Chicken’ Taco, Tortilla’s Made From Fried Chicken Flatbread! [PHOTO]

Over the past few months, it seems like the Taco Bell menu has fully embraced the fast food chain's reputation for being the ultimate food for the munchies, as they're expanding on increasingly odder items - now including a taco that, instead of a tortilla, actually uses fried chicken!

American Heart Association Recommends Eating Seafood Twice A Week

If Fish Is Brain Food, Can Fish Oil Pills Boost Our Brains, Too?

It was then reported that sea food consumption of more than 8 ounces can aid in reducing the risk of death and other cardiovascular diseases. Additional studies have linked that regular consumption of fish could lower the risk of cognitive decline as we age.

Nutella Shortage Possible As Weather In Turkey Wipes Out 70 Percent Of Hazelnut Crop

Someone Just Invented A Nutella Lock So You Aren't Forced To Share [PHOTOS]

No one will be sneaking into your Nutella jar anymore!

Food Tech
U.S. first lady Michelle Obama plays on the field during the NFL's Play 60 campaign to fight childhood obesity at Brock Elementary School September 8, 2010 in New Orleans, Louisiana.

Healthy Fast Food For Kids With ‘Healthy Happy Meals Bill’; Will It Solve Childhood Obesity?

It is a well-known fact that fast food isn’t healthy, but every parent also knows that fast food meals cannot be avoided and will not be turned down by most, if not all kids, especially those which include toys. Because of this, a New York City council member proposed the "Healthy Happy Meals" bill based on a California ordinance with similar aims.

World's Largest Food Company Nestle Reports Stong Earnings

KitKat Recipe: Nestle Announces Japan’s Favorite Chocolate Will Only Use Ethically Responsible Cocoa, No Child Labor Involved

In the first move towards a more ethically aware chocolate industry in what has been considered a major cocoa crisis on Earth, the KitKat recipe is now officially changing its cocoa supplies, promising to phase out chocolate coming from child labor by 2016.

Equal Sues Splenda For False Advertising

The Next Artificial Sweetener Is Made From-- Sand!

A new artificial sweetener was created which is twice as sweet than the regular sugar and can reduce your sugar consumption.

Real Time Analytics