BANGKOK, April 1 — Thai rice prices are expected to continue falling over the next few weeks as more supply comes to market and after the government was forced to shelve a controversial scheme to support farmers, Vietnam News Agency (VNA) reported.
Media reports said falling prices could prolong protests on the streets of Bangkok by farmers demanding outstanding payments from the canned subsidy programme while piling further pressure on the caretaker government of Prime Minister Yingluck Shinawatra.
Traders said the price of common grade 5-per cent broken Thai white rice fell 12 per cent from early this year to US$390 (RM1,273) per tonne on March 28. It stood at around US$410 last week.
"Rising supply during the harvesting season and government rice stock sales have dragged prices down," said a Bangkok-based trader.
Harvesting of the second crop began last month, with around 10 million tonnes of paddy expected to be reaped.
The Thai government has offloaded 730,000 tonnes of rice from its stocks, saying it plans to sell more to raise funds.
Since the demise of the programme, domestic paddy prices have fallen sharply to US$170 per tonne, below the US$463 the government paid under the intervention scheme.
Farmers, looking for outstanding payments and financial support from the government, have been protesting in Bangkok since mid-February.— Bernama
