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GFMM desk: Thailand's annual paddy production is forecast to be 27-28 million tons in the 2019-20 seasons. Second crop production was reduced due to flood and drought.
Whichai Phochanakij, director-general of the Internal Trade Department under the Thai Ministry of Commerce, said the second crop is estimated at just 3.5 million tons of paddy, down 54 percent against the previous season, due to drought and inadequate water supply from dams.
Meanwhile, production from the main crop is forecast at 24 million tons of paddy, down 4-12.5 percent from the previous season.
He said some 90 percent of production from the season 2018-2019 was harvested.
Speaking at a meeting of the subcommittee handling reference prices for rice price guarantees, Whichai said from now until 2020, the rice prices are expected to rise, thanks to lower supply and the government's rice price guarantees.
The Thai government recently set aside an additional 70 billion baht to shore up paddy prices, as the annual harvest is scheduled to flood the market.
Thailand exported 11.09 million tons of rice in 2018, 58 million tons lower than that of 2017. The country’s rice export turnover in 2018 increased by 8.3 percent compared to 2017, hitting 5.61 billion USD.
Rice production in Thailand represents a significant portion of the Thai economy and labor force. In 2017, the value of all Thai rice traded was 174.5 billion baht, about 12.9 percent of all farm production. Of the 40 percent of Thais who work in agriculture, 16 million of them are rice farmers by one estimate.
Source: Online/SZK
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