Commerce Ministry to find measures to support falling paddy prices
The Commerce Ministry is negotiating rice sales with China and South Africa to support farmers amid falling paddy prices. Additional measures include special rice markets, soft loans, and expanded exports to the US, Europe, and the Philippines.
The Commerce Ministry will request China to purchase an additional 280,000 tonnes of rice and convene a subcommittee to explore measures to assist farmers affected by declining paddy prices, Commerce Minister Pichai Naripthaphan announced on Wednesday.
Pichai stated that paddy prices had fallen following India's resumption of rice exports after a two-year hiatus. Simultaneously, he noted that Indonesia and the Philippines had reduced their rice imports.
He said the ministry was currently negotiating with China to secure an additional purchase of 280,000 tonnes of Thai rice. Additionally, he plans to visit South Africa next month to seek new rice markets for Thailand.
Regarding the agreement with China, Pichai specified that the sale would be conducted through a government-to-government deal.
During his visit to South Africa, he intends to sign a memorandum of understanding for the country to purchase 300,000 tonnes of Thai rice for 5.25 billion baht.
Pichai also directed a subcommittee of the National Rice Policy and Management Committee to meet on Thursday to devise measures to support farmers impacted by the declining paddy prices. These measures will later be presented to the full committee for approval.
The planned meeting and trade discussions with China and South Africa are part of seven urgent measures he has introduced to address the issue of falling rice prices.
The four additional measures include:
- Establishing special rice markets in 20 provinces within the Chao Phraya Basin. These markets are expected to boost paddy prices by 100 to 200 baht per tonne. The first special market opened in Ayutthaya from 16 to 20 February, with 14 more marketing events scheduled until April.
- Enabling EXIM Bank to provide soft loans to rice traders and exporters.
- Hosting the Thailand Rice Convention for global rice importers to negotiate rice purchases from Thailand.
- Expanding rice export markets to the United States, Europe, and the Philippines.
