Thailand weekly rice price report

Export prices continued to decline slightly by 1-2 percent due to quiet foreign demand. Foreign buyers buyers are waiting to see how the government’s proposed modifications of the direct purchase, which is waiting for Cabinet approval, will play out. The new modifications will provide millers with the necessary incentives to participate in the program by allowing them to swap lower quality second-crop rice with government’s high quality rice stocks at 1:1 ratio, as long as they buy current off-season crop 300 baht/ton of paddy above benchmark prices. Under this scheme, the farmers, in addition to receiving the extra 300 baht/ton for their paddy, will receive full compensation. The government expects that 300,000 tons will be exchanged under this program.