As per information available, it has been reported that the prices of Thai Rice are expected to climb steadily over the remainder of the year, mainly because of the impact of drought on rice production globally and at home. However, there are still factors that could suppress prices, including the world economy, financial woes in some countries and uncertainty over the oil price, as it affects the purchasing power of some nations that import rice. In this matter, Ms Duangporn Rodphaya, Director General to the Foreign Trade Department, revealed that thus rice prices were expected to increase continuously in the coming months because of these factors, while global and domestic demand were unchanged.
Further, it was narrated that with the low supply of rice and stable demand, the government would carefully consider the management of its rice stocks and the release of rice, with about 10 million tonnes currently in state stockpiles. In view of with the high demand, the government expects Thailand should break its rice export target of nine million tonnes in this year. Moreover, the department also reported that from January 1 to May 16, Thailand exported 3.9 million tonnes, which is up 18 per cent as compared to the same period last year, while the value rose 11.8 per cent to Bt60.99 billion.
Furthermore, Ms Duangporn also informed that many countries in Africa such as Mozambique had approached the government to purchase rice on credit. It was added that to sell rice on this manner required the Commerce Ministry to first speak with the Finance Ministry to ensure the government would be paid and any contract would be on a government-to-government basis . In addition, it was also explained that the government may talk to business groups and banks to find the best method for selling rice. However, it was told that the government did not sell rice via barter or counter trade.