Commerce Ministry sets up war room to monitor El Niño’s impact on food prices
The Commerce Ministry has set up a war room to monitor the impact the El Niño weather pattern is having on the price of rice and other crops.
The ministry has also promised to use the data to find a balance between the price of paddy and milled rice.
Outgoing Commerce Minister Jurin Laksanawisit chaired a meeting of senior officials at the ministry’s head office at noon on Monday to discuss the impact of prices and the weather phenomenon.
Attending were the ministry’s permanent secretary and commerce envoys attached to Thai embassies in 58 countries, representatives from the Agriculture, Finance and Digital Economy and Society ministries, as well as some private organisations.
On July 20, the Indian government stopped all export of rice to ensure there is enough for local consumption.
Jurin said the meeting considered this export ban in India as a good opportunity for Thailand to enter markets that were once dominated by Indian exporters. He said Thailand could sell more rice to Africa, which was once a key market for India.
However, more rice exports and subsequent surge in price would affect the price of animal feed that use rice as an ingredient, Jurin added.
As a result, the Commerce Ministry needs to find a balance between the price of paddy and milled rice so farmers can earn more while consumers are not adversely affected, he said.
“If the price of milled rice is too high, we need to employ controls to keep the price affordable for consumers,” Jurin said.
“But, at the same time, sellers of bagged rice should also be allowed some profit, so they can survive.”
Jurin said the war room would closely monitor the El Niño situation both in Thailand and overseas, and commerce envoys will also monitor crop prices in the countries they are stationed.
The envoys are expected to report prices, especially that of rice, to the ministry every other week, he said.
Jurin added that Thailand was still being affected by a mild version of El Niño. According to the Thai Meteorological Department, El Niño can be divided into three levels, mild within a magnitude of 0.5 to 1; middle at a magnitude of 1 to 1.5; and extreme, which goes above 1.5 level. At the extreme level, the weather phenomenon can cause severe droughts, floods, and diseases.
In May and July this year, the El Niño magnitude in Thailand stood at 0.8 compared to 1.2 in 2016.
Jurin said the Royal Irrigation Department expects rainfall this year to be 5% lower than the average of the past 30 years. It also expects the water levels in key dams to be about 50% lower than last year. Farmers depending on irrigation canals will also be affected, Jurin added.
