Low rice prices may force millers to shutdown operations

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BANGKOK, 17 June 2015, Thai Rice Mill Association President Manus Kitprasert has expressed concern that the prolonged low rice price in Thailand could force many rice mill operators to exit the market.

Mr. Manus also predicted that the 3rd round of government rice auctions, which would be held soon, is unlikely to attract the attention of entrepreneurs. He attributed the low demand for rice as the main reason behind the low price, despite a 30-50 percent reduced harvest caused by drought.

Of more than 100 rice mill operators affected by the low rice price issue, several have been forced to shut down operations.

Currently, the price of 15 percent water content rice is in the range of 7,500 – 7,700 baht per ton, down from the previous 8,000 – 8,500 baht per ton. Farmers’ average selling price is around 6,700 – 7,000 baht per ton.