The Bank for Agriculture and Agricultural Cooperatives (BAAC) research centre forecasts that the price of rice and other agricultural products will increase in May, while the rubber price will fall. THE NATION (THAILAND)
The price of agricultural products in Thailand is likely to rise due to increased export demands and natural disasters in other countries, a study conducted by the Bank for Agriculture and Agricultural Cooperatives (BAAC) revealed.
The price of white rice with 15 per cent moisture, which currently goes for 8,419-8,465 baht ($255.50-256.90) per tonne is expected to rise by 0.30 to 0.84 per cent thanks to government-to-government sales agreements with China, Bangladesh and Indonesia.
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Similarly, the price of cassava is expected to rise 0.51 to 2.54 per cent from its current price of 1.98-2.02 baht per kg due to the Thai currency’s depreciation. Demand for cassava has also surged in China because the country’s worst flooding in 80 years has wiped out cornfields.
Raw sugar, which is going at 12.79-13.17 baht per kg, can expect a boost of 1.5-4.5 per cent as China is expected to import more sugar. There is concern that Brazil, one of the world’s largest sugar producers, will not be able to meet its orders this year because frost damaged many sugarcane fields in mid-July.
The price of oil palm, currently standing at 6.27-6.31 baht per kg, is expected to rise 0.12-0.87 per cent due to an increase in demand from India, the world’s largest consumer of palm oil.
However, the price of palm oil is expected to move in a small range owing to pressure from the global price of crude oil, which is expected to drop as the US boosts its production.
Jasmine rice, corn with a moisture content of less than 14.5 per cent, raw rubber sheets, white shrimp and beef have been affected by virus-control measures, resulting in a drop in domestic demand and subsequent drop in prices.
Meanwhile, Thai exporters are currently preparing to export 44,000 tonnes of 100 per cent white rice to Iraq for the first time in seven years after Baghdad had suspended the import of Thai rice.
Government spokesman Anucha Burapachaisri said in a Facebook post on August 1 that he expected the export in the middle of this month, after which Thai exporters could gradually export more rice to Iraq.
“The government is ready to promote Thai exporters to open more rice markets in addition to the three main markets – premium, general and niche – which will be a positive sentiment for Thai rice farmers as well,” he said.
He added that the government is also ready to promote Thai exporters to trade agricultural products in Asia, the Middle East and other regions.
“Prime Minister Prayut Chan-o-cha has instructed the commerce ministry to promote rice and other Thai agricultural products to increase their share in the global market and compensate for the slowdown in domestic consumption due to Covid-19 and the economic slowdown,” Anucha said.
THE NATION (THAILAND)/ASIA NEWS NETWORK
