The Thai stockpiles of rice has reached around 12.8 million tons which has forced government to slump the rice rate further almost by six year low and may start off a price war with Vietnam and India.
All the three countries account for 62% of rice trade last year and Thai plans to sell about 1 million tons a month versus monthly export of 558,000 tons last year. Currently Thai grain is quoted at around US$365 to US$370 a ton, which is lower than US$385 in Vietnam and US$420 in India. The industry and Trade Union Minister Mr. Vu Huy Hoang of Vietnam commented that Thailand is ready to sell grain at any price causing a drop of around 20 percent to 1.2 million tons in first quarter. The rice rates may slump due to stockpiles of rice reaching 12.8 million tons. A state- buying programme is there under which Thailand have accumuled rice reserves but the has ended this year.
With reduced food costs, the inflation across Asia can be controlled, but has affected the export prices heavily for country like India where the price rice rates may slump by US$20 a tonne, Commented Mr. B.V Krishna Rao, Managing Director of Pattabhi Agro Foods. Trade inquires have stopped because the Thailand is selling stockpiles at cheap rates.