Rice millers worry about sharp fall in prices following India’s return to the export market

An adviser to the Thai Rice Mills Association has called on the government to guarantee paddy prices at 10,000 baht per tonne, saying the prices of freshly-harvested rice had fallen to a 10-year low to 6,000 baht per tonne.

Chamroen Natthawut, who also operates a rice mill in Nakhon Pathom province, said paddy prices had been falling since the beginning of this year as India has resumed export of milled rice, prompting rival exporter nations to reduce prices.

Chamroen said the fall in the export price had led to a decline in paddy prices in the country as well.

This has inflicted losses on rice millers who had bought paddy at higher prices before the year-end.

Chamroen said rice millers needed to stock some 3 to 4 tonnes of paddies for their operations.

“If the price falls by 100 baht per tonne, we’ll suffer a loss of 2 million or 3 million baht. If the price falls by 1,000 baht per tonne, we suffer a loss of some 30 million to 40 million baht,” Chamroen said.

He said in December paddy price was over 10,000 baht per tonne. But now, freshly-harvested paddy without drying first and with moisture content of 25%, was being sold for some 6,000 baht per tonne.

Thansetthakij surveyed paddy prices nationwide as of January 24 and found that paddy with 15% moisture content was bought at 8,800 baht per tonne and with 29% moisture content at 6,900 baht per tonne.

Chamroen said he would like the government to revive the price guarantee measure for paddies at 10,000 baht per tonne.

He said the government should compensate farmers when they sell paddies at prices lower than 10,000 baht per tonne with a maximum of 20 tonnes per household.

The measure would allow rice millers to buy paddies at cheap and competitive prices without worrying that they would suffer a loss later, he added.

Chamroen suggested that the current measure of paying a subsidy of 1,000 baht per rai to farmers should instead be used to improve the irrigation system.

Published Date: January 26, 2025