Rice Prices Increase after Floods in Thailand and Vietnam

Rice prices are expected to increase after the recent flood crisis has sharply reduced output from two main exporters, namely Thailand and Vietnam. Commerce Ministry Permanent Secretary Yanyong Puangrat stated that he has instructed the Internal Trade Department, the External Trade Department, the Public Warehouse Organization and the Marketing Organization for Farmer, to quickly explore the extent of damages at their respective warehouses hit by the deluge.

Yanyong said initial inspection found that 120,000 sacks of rice in the government's stockpile have been ravaged by the widespread flooding. He expected a more complete evaluation of the damage to be known by next week.

The Commerce Ministry permanent secretary noted he received reports from the Agriculture and Cooperatives Ministry that this year's floods have devastated over 6.9 million rai of paddy fields.

He said farmers were previously expected to produce 22 to 24 million tons of paddy after the harvest of in season rice but the floods have caused a drop by two to three million tons.

Yanyong added the lower output may result in higher prices of rice as Vietnam, another major rice exporter, is also suffering from floods.