The price of Hom Mali rice for 2016-17 crop is steadily plunging because potential buyers have suppressed rice prices in the wake of bumper harvests in most rice-producing countries.
Export price for milled Hom Mali rice for the month of December was quoted below US$500 or US$490 per tonne which is regarded as the lowest level in ten years.
The export price of 5% white rice has also dropped accordingly to US$347 per tonne for rice deals to Japan which is regarded as VERY low and is not much different from similar grains from Vietnam and India, Thailand’s main competitors.
15% (humidity) Hom Mali paddy from Buri Ram was quoted on October 26 at 9,000 baht/tonne compared to 10,000 baht/tonne just a week earlier while 30% Hom Mali paddy from Nakhon Ratchasima was quoted between 6,800-7,000 baht/tonne on October 26.
A source in the rice exporting business, however, is optimistic that Hom Mali price has dropped to its lowest level and is expected to rebound once the government has intervened by starting stockpiling and finding new export markets.
The Commerce Ministry has asked rice exporters to buy 200,000 tonnes of Hom Mali rice to keep in storage for about three months which will hopefully help edge up rice prices.
The Rice Policy and Management Committee is due to meet on Monday to discuss ways and means to help shore up rice prices and to help farmers.