The price of bagged rice dips 25 baht

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BANGKOK, 15 May 2014, – The price of packed rice has dipped 25 baht from a range of 110 – 120 baht per 5kg bag to 90-95 baht a bag, reports Mr. Somkiat Makkhayathorn, President of the Thai Rice Packers Association. 

He noted that the price drop is in line with the global rice price which has declined to a record low. He also attributed the drop to the repeated release of stockpiled rice from government warehouses as well as the fact that new grain is still flowing into the market.

President Somkiat said some of the packed rice brands have reduced their prices to the range of 70-80 baht per pack, pointing out however that the price wouldn’t drop any further as the price merely covers operational costs. He said new grain is now priced at 11-12 baht per kilogram, or 15 baht when the processing cost is included, adding that the price should stabilize during the second half of this year

Mr. Somkiat is confident that the price of Jasmine rice will remain the same for the time being. Meanwhile, the Thai Rice Exporters Association supported Mr. Somkiat’s opinion, saying that the rice price has hit the lowest level in a decade with the prospect of dipping even lower, should India decides to unleash its stock on to the global market.

The association indicated that, after Vietnam sold 800,000 tons of rice to the Philippines recently, the price of Vietnam grain has stabilized somewhat, with the potential to adjust itself upwards. The Thai Rice Exporters Association claimed that, due to various factors, Thai rice is unable to gain a better price, despite the fact that the kingdom has just secured a rice deal with the important Malaysian market.