Increased purchase orders for Thai par-boiled rice from Africa coupled with substantial drop in second-crop rice production as a result of prolonged drought have driven the price of paddy in the domestic market to surpass 10,000 baht per tonne – the highest price recorded in three years.
Mr Manas Kitprasert, president of Thai Millers Association, said that the price of 5% paddy with 15% moisture was quoted at Phichit rice market at 10,500 baht per tonne compared to 8,500 baht in early July – an increase of about 2,000 baht which is the highest in three years.
He said that several buyers in African countries had placed orders for the purchase of Thai par-boiled rice – hence driving up the paddy of new crop required to turn into par-boiled rice.
The price of par-boiled rice itself has increased to 15,500-15,800 baht pertonne as export price was quoted at US$395/tonne.
But Mr Manas predicted that the price of paddy would drop reflecting a slowdown in exports as buyers have already placed huge orders for par-boiled rice.
Mr Chukiat Opaswong, honorary president of Thai Rice Exporters Association, meanwhile, said that paddy price would drop as buyers would slow down their purchase orders.
He estimated that about 650,000 tonnes/month of rice would be exported during July-September period and would then increased to about 800,000 tonnes per month during the fourth quarter of the year.
For the whole year, between 9.2-9.3 million tonnes of Thai rice are expected to be exported.
