The measure aims to improve the financial situation of farmers after verifying that the price of rice on the international market is excessively low and “unfair” for the producing countries and those who work it.
The price of rice will rise in the world market.
That after a agreement between vietnam and thailandwhich are respectively the second and third largest exporters on the planet.
Both countries have agreed to work together to raise the price and improve the financial situation of farmersThai sources said on Monday.
The counselor of the Thai Ministry of Agriculture, Alongkorn Phonbutr, indicated in a statement that both parties have reached this agreement after verifying that the price of rice on the international market is excessively low and “unfair” for producing countries and farmers.
However, he did not offer details on the price levels that have been set to reach in international markets or more details about the plan.
The price of rice on the international market fell from US$404 per ton in 2019-2021 to US$394 in 2022.
Though it is now expected to rise to as high as $400 a ton next year, according to a report by the UN food agency (FAO) and the Organization for Economic Co-operation and Development (OECD).
Raise the price of rice: measure against inflation
Alongkorn pointed out that the agreement has been reached in a recent official visit to Vietnam in which both countries resumed the negotiations that began in May 2021 to alleviate what they consider to be low rice prices amid rising global inflation.
“(The current price) It is not logical with the increase in the cost of production, as well as the price of fertilizer and fuel due to the impact of the covid-19 crisis and the Russian-Ukrainian war”specified the ministerial adviser.
Alongkorn assured that thefarmers suffer from debt due to high production costs, which, in his opinion, may lead them to reduce rice production, worsening current food security problems.
The counselor indicated that the plan to raise prices includes cooperation with the associations of rice producers and that they will seek to join other producing and exporting countries of this important food in Asia.
The main exporter of rice in the world in 2021 was India, with 19.55 million tons, followed by Vietnam (6.24 million tons) and Thailand (6.11 million tons), in line with data from the Association of Thai Rice Exporters quoted by Bangkokbiznews.