26 Jul '11, 4pm

Thailand's new govt to buy rice above market price

Thailand's new govt to buy rice above market price

BANGKOK: Thailand's new government said it will buy rice from farmers at above market prices. Even though this is good news for rice producers, it has left small vendors are feeling the pinch. A Pheu Thai campaign promise to buy unmilled rice at over US$500 a ton is a big spike for those who grow Asia's staple grain. But with millers are hanging onto their supply, it has made it hard for small family businesses who sell raw rice. Worasak, a raw rice vendor, said: "Rice prices have increased due to the new government's rice price pledging scheme. "Farmers are reluctant to sell to millers as they will get a better price when they sell it to the government. "Given that the new government prices rice at 15,000 baht per ton, current stock is held in hopes of a higher price in the near future." In fact, some sellers said that prices increased as soon the policy was announced, on...

Full article: http://www.channelnewsasia.com/stories/southeastasia/view...

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