Permanent Secretary for Commerce Yanyong Phuangrach(ยรรยง พวงราช) has termed as groundless a report that the Thai government had stocked up a lot of rice that exceeded the market demand. The rumor has sparked concerns among exporters and scholars that rice prices will decline in the second half of the year. According to Mr. Yanyong, the rumor was created to coincide with the Thai government’s plan to release rice in stock both under the G-to-G system and through auctions by the private sector. The rumor was intended to pull down domestic prices of rice, so that the private sector can purchase it from the government at a rate lower than the actual market price.
Mr. Yanyong has also revealed that before a release of rice by the government, there usually be this sort of rumor trying to ruin the market. The latest rumor said that Thai exporters would not be able to sell the rice because Vietnam still had plenty in its stock and its price is lower than Thai rice. He said the fact is that Vietnam is running out of rice in its stock.
In addition, Mr. Yanyong is confident that Thai rice exports will definitely reach the 9.5-million-ton target by the end of the year.