Thailand to sell its surplus rice stocks
June 14
Thailand, the world’s biggest rice exporter, plans to start selling rice from its huge stockpiles this month, but India said on Monday its export ban would remain in force, which will provide support for prices. At present, the government holds a record six million tonnes of rice.
Some traders said the government stockpile could rise to seven million tonnes of milled rice by the end of July, when the latest government buying scheme is due to end.
A senior trader at a rice convention in Bangkok said benchmark Thai rice could go as high as $800 per tonne later this year if the Indian ban remained in force.
Thai Deputy Prime Minister Korbsak Sabhavasu said the government would open tenders to sell rice from its stocks this month, selling grain gradually instead of releasing big amounts as it used to do in the past, which depressed market prices.
Despite Thailand’s plans, rice prices are unlikely to fall significantly as traders do not expect India to resume exports soon, since the New Delhi government is worried about the current crop after the monsoon came quite late. The Indian export ban played a big part in pushing rice to a record high of $1,080 a tonne in April 2008.