In the News: Rice price hike possible due to new Thai policies
Thailand’s incoming government is planning to implement a new policy of buying unmilled rice or paddy from growers at 15,000 baht (about 50 per cent above current prices) by the end of the year. This will allow rice farmers to earn more, but it might also drive rice export prices up by around 50 per cent. The rice in prices might affect rice importing countries.
SINGAPORE: Thailand is expected to roll out policies to help its rice farmers get higher prices by the end of the year.
And there are some concerns this might affect importing countries like Singapore.
Some industry players said this might drive prices up by around 50 per cent, but some analysts said there is no need to panic yet because the eventual impact from the plans may not be significant.
Thailand’s rice farmers can expect to earn more when a new policy to guarantee them higher prices comes into force by year end.
Giving farmers a minimum price to sell their rice was one of the key policy changes for Thailand’s incoming government. Prime Minister-elect Yingluck Shinawatra had pledged to buy unmilled rice or paddy from growers at 15,000 baht, about 50 per cent above current prices.
But this has raised concerns because it will mean rice exports from Thailand could cost more in the future.