Thai PM urges calm as exporters see rice 'crisis'
THAILAND: Thailand, the world's leading rice exporter, insisted
Friday it had enough for domestic consumption but exporters warned of a
crisis, as dealers hoard rice to sell overseas at current sky-high
prices.
Prime Minister Samak Sundaravej tried to reassure the nation that the
rapid rise in global prices, which have also driven up the cost at home,
would not cause a shortage on local shelves.
He said the soaring prices had sparked panic buying, but insisted the
country had ample rice reserves.
"It is impossible that there will not be enough rice for sale. News
reporting makes people panic, causing people to buy 10 bags instead of
one or two bags," Samak told reporters during his weekly briefing.
"High prices now are due to supply and demand, and it will be like
this only for this period," he said.
The benchmark Thai variety, Pathumthani fragrant rice, was priced
Wednesday at 930 dollars per tonne, up 52 percent from a month earlier,
according to the Thai Rice Exporters Association. The group's price
survey is updated weekly.
Other rice-producing countries including India and Vietnam have
announced export curbs to ensure domestic supplies, amid warnings from
experts that governments in Asia could see public unrest if prices
remain elevated.
Thailand has not announced any cut to exports but said Wednesday it
would release 650,000 tonnes from government stockpiles to sell locally
at below the market rate.
Exporters say, however, that their own stocks are running low,
blaming mills and middlemen for hanging on to supplies in the hope that
prices will keep rising in the near future. "The rice situation at
present is in crisis," said Korbsook Iamsuri, secretary general of the
exporters association.
"Exporters are facing trouble because their rice stockpiles are
running short, while no more rice is coming to fill the stocks. Few rice
farmers have any stockpiles because most of them have no silos for
storage," she said.
"Currently, rice is most likely in the hands of middlemen and the
mills," Korbsook said.
She estimated that one million tonnes of rice was now held by
exporters, who were still waiting for rice from the current harvest
which should already have started arriving in larger quantities.
"Rice prices are abnormally unstable.
They are shooting like rockets and changing swiftly within a week,"
she said. Korbsook said that while growing global demand and a shortage
of supply were driving prices higher, the increases should happen at a
slower rate.
The association has not made any demands of the government yet, but
industry groups plan to meet Saturday with commerce ministry officials
to discuss ways of addressing the situation, she said.
Bangkok, Sunday, AFP |