According to the sources, the Minister for Agriculture and Cooperatives indicated in his statement that Thailand’s 2015-16 secondary rice crops (January – June) acreage is likely to decline by about half to around 800,000 hectares due to extending drought conditions. Further, it has been reported that the water levels in the country’s dams stood at around 3.2 billion cubic meters as of February 15, 2016 compared to around 6.8 cubic meters on November 1, 2015. So, the authorities have been discouraging rice farmers to avoid planting for the secondary rice crop due to insufficient water supplies.
Therefore, accordingly, the country’s rice output from the secondary crop is expected to drop significantly. The Minister told to the reporters of the newspaper that plans for the country’s 2015-16 main rice crop (May – December) will be complete by around April. Further, in a recent report, the USDA Post forecast Thailand’s MY 2015-16 (January – December 2016) paddy rice production at around 24 million tons, which down from last year’s 29.4 million tons. It also forecast that Thai off-season paddy production may decline about 57% y/y to around 3.1 million tons.