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Thailand's rice prices fall, possible economic crisis

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Thai media reported on July 28 that Thailand's agricultural land area is 150 million rai, and the total area of rice that can be grown is 6000 rai. The planting, consumption and export of brown rice are the highest, and it affects Thailand's overall and basic levels. Economy, and the average price of 7,500 baht per ton is the lowest in several years, warning that economic problems are coming.

The Thai Granary Union stated that the main reason for the drop in rice prices is the reduction in exports due to transportation factors. The other reason is that the COVID-19 affects the labor required to transport the rice, because more caution is needed and the problem of transportation lag occurs. August and September enter the rice harvesting season, and the problem is even more worrying. The listing of a large number of rice will inevitably lead to a drop in prices, which will affect farmers'income. However, the cost of agricultural cultivation has continued to increase. The fertilizer used to be 400-500 baht, but it has now risen to 700 baht.

The price trend of rice prices in the next 1-2 months will be even more severe, because a large number of new valleys will lower prices, and the good harvest brought by sufficient rainfall will be offset by falling corn prices. However, the rise in farming costs and other issues are worrying.

The decline in the export volume of rice will eventually affect domestic grain prices and farmers'income. The solution to the problem is to speed up the convenience of logistics and transportation, because in addition to the epidemic situation that has not yet improved and has a tendency to intensify, the greater Thailand's export growth, the greater the demand for containers. It will increase accordingly. Therefore, it is preliminary estimated that this year's rice exports will be about 5 to 5.5 million tons, which is a very low year compared with the export situation of several years.


Source: China Agricultural Information Network


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