Thursday, April 03, 2008

Thailand may slow exports to ease "rice unrest"

April 2, 2008
By V. Phani Kumar
MarketWatch


HONG KONG (MarketWatch) -- Thailand may slow rice exports to control soaring domestic food prices in a move that could further raise the cost of rice in Hong Kong, according to a media report Thursday.

Nearly 90% of Hong Kong's rice imports come from Thailand.

Charin Hansuebsai, managing director of Thailand's Rice Exporters Association, said rising rice prices had already created "rice unrest" in Thailand, although the world's largest rice exporter had sufficient stocks, the South China Morning Post reported.

The report came after India, another major rice producer in the region, earlier this week banned exports of all types of white rice, other than highly-priced, premium quality basmati. Vietnam also curtailed rice exports to cool soaring prices in the domestic market. Cambodia banned rice exports, while Egypt has suspended exports until October, according to news reports.

"This needs to be solved quickly ... prices are causing problems," said Charin, adding that Thailand may adopt measures to slow exports to bring "the situation back to normal," according to the report.

The newspaper report said export prices of Grade A Thai fragrant rice rose 9.6% to $1,009 a ton Wednesday from $920 a ton last week. The latest prices are 32% above prevalent prices at the end of February.

In Hong Kong, prices of fragrant rice imported from Thailand jumped to HK$5.95 (76 cents) per 600 grams, from HK$5.15 last week, added the report, citing a local rice importer and wholesaler.

Hong Kong government officials called for calm, adding local supplies of rice were stable, it added.

Varahabhotla Phani Kumar is a reporter in MarketWatch's Hong Kong bureau.

2 comments:

Anonymous said...

Since Thailand didn't stop exporting, I hope we got some of their export to help reduce our price as much as possible.

Anonymous said...

PS: I mean if it is cheap.