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Thai Rice Exports Shrink 13% in this year

Thailand threatened to lose the predicate as the largest rice producer in the world because of the failure of government policies and the number of farmers who face a high debt load.

 

Reporting from Nikkei, Saturday (07/25/2015), the Thai Rice Exporters Association expects rice exports will fall 13 percent over last year, reaching 9.5 million tons this year. This revised down from the previous forecast, this figure under the Indian rice exports are predicted to reach 11 million tons.

 

 

The drought is predicted to be the cause of the decline in Thai rice exports. Even the growth of the agricultural sector of Thailand to minus 4.2 percent in the first six months of this year.

 

In addition Yingluck Shinawatra government policies that buy rice 50 percent of the market price also caused a shortage of rice exports. This makes the lack of supply of rice due to purchase up to 40 percent of the population of Thailand. The policy is no doubt raise the price of rice which lowers the level of Thai rice competitive in export markets.

 

The association also mentioned loss of these systems reach 537 billion baht, or reach USD15,37 million in February 2015. Maintenance costs for the storage of rice reached two million baht per month.

 

As a result, the Government of Thailand also can not provide fresh rice to China and other countries. Just FYI, the military regime coup Thailand in May 2014 began a policy to delay rice planting channeling water to farmers. However, this policy actually trap farmers into debt.