WRITER: Phusadee Arunmas

The Commerce Ministry is monitoring the new harvest season of paddy rice, with a plan to implement support measures as approved by the National Rice Policy Committee (NRPC) to help farmers.

Wittayakorn Maneenetr, a spokesman for the Commerce Ministry, said the Internal Trade Department is monitoring the price of paddy rice for the 2024/25 harvest.

It was found that around 13.4 million tonnes of paddy rice have been released into the market, or 50% of total production.

Rice prices have steadily risen for Thai hom mali fragrant rice paddy, Pathum Thani rice paddy, and mixed-glutinous rice paddy due to a reduction in the amount of stock in rice mills.

As of Nov 15, the average price of 15% moisture content rice paddy was 10,550 baht per tonne, up by 500 baht per tonne.

However, due to a high amount of rainfall in the Northeast, the moisture content has increased, which resulted in a reduced selling price.

Commerce Minister Pichai Naripthaphan has ordered the provincial commercial office and the Internal Trade Department to monitor the price of paddy rice to ensure a fair price for farmers.

The provincial commercial office, in collaboration with the department, is organising commercial markets for paddy rice for the 2024/2025 harvest in 33 provinces to link farmers’ produce with rice mills, which provide farmers with more options and bargaining power. One is taking place at Duangjai Group Co Ltd in Nong Khai province on Nov 18-22, and another is being held at Muang Song Agriculture Cooperative Ltd in Phrae province on Nov 21-23.

Export prices of hom mali rice are now being quoted at US$935 per tonne against $869 last year (up 7.59%), Pathum Thani rice is being quoted at $875 per tonne (up 24.6%), white rice is being quoted at $603 per tonne (up 11.6%), parboiled rice is being quoted at $601 (up 10.8%), and glutinous rice is being quoted at $818 (up 0.62%), according to the Foreign Trade Department.

Thai rice exports still have promising growth potential.

Mr Pichai said Thailand exported 8.37 million tonnes of rice in the first 10 months of 2024, up 22% year-on-year.

The Foreign Trade Department and the Thai Rice Exporters Association are confident that rice exports this year will reach 9 million tonnes, generating revenue of $6.4 billion, or 230 billion baht due to orders driven by demand from major markets such as the US, Hong Kong and Canada.

For the final quarter of this year, rice exports are expected to continue as the harvest approaches, with orders driven by demand from major markets in preparation for Christmas and the New Year.

Prime Minister Paetongtarn Shinawatra ordered the Commerce Ministry to expedite measures to stabilise rice prices as approved by the NRPC. These measures aim to prevent a price drop in this year’s rice crop due to an oversupply during the harvest.

The first measure entails loans to farmers to delay the sale of hom mali paddy rice with a moisture level of 25% worth 8.36 billion baht and covering 3 million tonnes.

The second measure concerns loans for rice farmer organisations, which will gather rice from farmers and pledge the product to the government in significant amounts to ensure a better deal, he said.

A total of 656 million baht has been earmarked for funding this loan-offering programme, while the rice pledging target has been set at 1 million tonnes.

The third measure involves a support programme for private rice warehouse operators participating in the rice-pledging scheme.

The state will subsidise 3% of the interest on loans that these operators incur, provided they assist in managing pledged rice stocks for two to six months. Some 585 million baht has been allocated for the programme, covering 4 million tonnes of rice.

Published Date: November 19, 2024