China prepares for higher cost of Thai rice in global market

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BANGKOK, 17 July 2011 – According to Xiamen reports, due to the fact that Pheu Thai Party had won the general election to form the country’s new government, the export value of rice is expected to be increased by 66 percent due to their rice pledge policy of 15,000 THB per tonne. 

Reportedly, many rice mills in Thailand have been stocking huge amount of paddy since the rice’s value is predicted to be high and consequently the net cost will also be high for exporters.

Meanwhile, China has always been importing Thai rice annually for over 200,000- 220,000 tonnes, and Xiamen 10,000 tonnes. As for the first five month of this year, Xiamen had imported rice from Thailand for over 8,143 tonnes, an increase by 40.4 per cent from last year.

Furthermore, the changes in cost of Thai rice might also affect the global market, given that the increase in the cost of Thai rice will eventually make value of rice from other countries increase as well.