Thai Rice Policy: Wait and See

Setting a minimum price for paddy is one of the campaign promises that the Pheu Thai party made to its supporters during the recent election campaign in Thailand before it was elected to power. Now it’s a matter of waiting to find out whether this policy will actually be implemented by the new government, so farmers can sell their paddy at a higher price. The party’s pledge of the policy aims to help farmers by pushing the rice reference price to 15,000 bhat (US$500) per ton, according to the Thai Rice Exporters Association. Charnchai Rakthananon, the president of the Thai Rice Millers Association, said at a recent Thai Rice Exporters Association meeting that retail rice prices were expected to increase by 25-50 baht (US$0.84-US$1.68) per 5kg pack while the newly elected Pheu Thai Party’s “minimum price of paddy” policy amounts to a commitment of 15,000 baht (US$504.37) a ton for white rice paddy, and 20,000 baht (US$ 672.50) for Hom Mali fragrant paddy.