BANGKOK 10 March 2014 Packed rice will cost consumers between 80-120 baht per a 5-kilogram bag this year, a decrease of at least 3-5 % from last year, given the fact that paddy price has decreased.
According to Somkiat Makayathorn, President of the Thai Rice Packers Association, the price of packed rice this year will cost consumers 3-5% less than it did last year. In other words, last year’s price of 90-130 baht per bag will be lowered to 80-120 baht.
The reason behind the drop is that the prices of paddy have plunged considerably. At the moment, the price stands at 13 baht per kilo, or 13,000 baht per ton, while the price paid to rice farmers has dropped to 7,500 – 8,000 baht per ton.
Mr. Somkiat further stated that companies that sell rice will start to adjust their prices accordingly, lowering retail prices of packed rice. However, he does not believe the price will drop any further, as it is already considered the lowest point, which is very close to the price of rice in other countries.
The President of the Thai Rice Packers Association added that the drought affecting rice production this year should be another factor that prevents the price of Thai rice from dropping even further.