Friday, August 18, 2023

"India's rice export ban brings chaos to Thai market"

Nikkei makes the excellent point that nations in surplus could have been looking at an export boom. 
If it weren't for the drought fears.*

From Nikkei Asia, August 17:

Surging demand sparks speculative hoarding, undercuts export opportunity

Rice trading in Thailand, the world's second-largest rice exporter after India, has turned chaotic as India's recent ban on rice exports touches off panic buying. Speculative hoarding is draining supply from the market, leaving less rice available for export.

Thailand's domestic milled rice prices jumped nearly 20% last week to 21,000 baht ($597) per tonne, up from around 17,000 baht over the pervious few weeks.

That has pushed up the Thai export price for benchmark white rice 5% -- which includes 5% broken rice -- to $610 per tonne, reflecting the rise in global prices, which surged to an 11-year high. Although the Thai government has no plans to limit rice exports, Thai exporters are still reluctant to sell due to uncertainty over supplies.

Thailand normally produces around 20 million tons of milled rice, half of which is consumed domestically. The other half is typically exported....

Drought pushes up wholesale prices of rice in Thailand
Vietnam Investment Review, August 17