Delay in Rice Delivery in Thailand:The Rice Prices may hike In Thailand due to delay in rice shipment as the workers take off after the military coup.
Chookiat Ophaswongse,the president of Thai Rice Exporters Association said that 70% of the workers are involved in loading grain at warehouses and moving it to vessels have left the country,” since the military seized power on May 22 , but the military denied such move.
Due to the shortage of labours in Thailand the prices of rice may touch a level, highest of three months.
According to the data of US Department of Agriculture (USDA) Thailand is set to account for 22% of global rice exports in 2014. Only about 500 tonnes of rice a day can be loaded now, compared with 2,000-3,000 tonnes normally. ‘Workers load sacks from warehouses onto lighters and onto vessels at ports. The loading rate is about 300 tonnes a day now compared with 1,500 tonnes normally.
Currently the price of a tone of broken white rice is US$398,but this shortage will add a hike of 1.5% in the price. As a prominent rice producer, Thailand’s delays could jeopardize the food supplies of several other countries, including longtime importers in Africa, like Nigeria, South Africa and the Ivory Coast. As a result, these importers could potentially look elsewhere to fulfill their needs, allowing nearby competing markets to usurp Thailand’s dominance.
This price rice may slow down the demand for the thai rice and the rice buyers will run towards cheaper sources like Vietna.
According to the Department of Employment ,Thailand out of Country’s total migrant worker population of 2.23 million,1.82 million people entered the country illegally.