Flood damage to rice could amount to 7 million tons
The floods have so far damaged 700.000 tonnes of paddy but the final figure could be 6 to 7 million tonnes, the Department of Commerce estimates.
This has hardly any influence on exports; expected this year Thailand to export 11 million tons.
The Ministry of Agriculture reports total damage to 10 million rai of agricultural land, of which 8 million are paddy fields. The provinces of Pthitsanulok, Nakhon Sawan, Phichit and Suphan Buri are the most affected.
Yanyong Phuangrach, permanent secretary of the Ministry of Commerce, hopes that traders and consumers will understand that supply is reduced and prices can rise. Farmers normally harvest twice a year, but this year many will only be able to harvest once.
Thailand has so far exported 9 million tons of rice. The price has increased, but not so much that it has affected sales. According to Yanyong, the demand for Thai rice remains high. India has exported just 10.000 tons after previously announcing it would export 2 million tons. India mainly exports to Pakistan, which is not an important market for Thailand. Thailand is increasingly focusing on Africa.
Thai white rice now costs $600 a ton; Vietnam $570. Traditional customers continue to buy Thai rice despite the price difference, says Yanyong. Ivory Coast is likely to buy 200.000 tons this year.