Thailand rice production to decline behind drought and subsidy loss
July 23, 2014 8:47 am
Thailand rice production to decline behind drought and subsidy loss
Drought in Thailand is expected to hit rice harvests in the region to help production levels already strained by the conclusion of a subsidy program to its lowest in five years.
Somkiat Makcayathorn, president of the Thai Rice Packers Association says they expect a drop of as much as 10% during the 2014-2015 season for a limited production of 34 million tons. The second largest shipper last hit a comparable level in 2009-2010 when output was at 32.4 million tons.
Drought has been present in regions across the Southeast Asian country this year with 49 out of 77 provinces experiencing rainfall below the 30 year average on May 31st. Farmers surveyed by Bloomberg say that yields may fall from 20% to 50% because of both unfavorable weather conditions for planting and a lack in water supplies.
Thailand’s subsidy program, which consists of the government purchasing rice from farmers at a price higher than market value, ended in February after being established by recently deposed Prime Minister Yingluck Shinawatra in 2011. Exports from the country fell to 6.72 million tons from 10.6 million last year when its reserves expanded to 12.8 million from 5.62 million says data from the US Department of Agriculture.
India, the largest shipper, has also suffered from dry weather which the Food & Agriculture Organization (FAO) of the United Nations forecasts will lead to global stockpiles declining for the first time in a decade. The FAO predicts supply from India to drop 1.2% to 157.5 million tons.
The material has been provided by InstaForex Company – www.instaforex.com
Thailand rice production to decline behind drought and subsidy loss
Drought in Thailand is expected to hit rice harvests in the region to help production levels already strained by the conclusion of a subsidy program to its lowest in five years.
Somkiat Makcayathorn, president of the Thai Rice Packers Association says they expect a drop of as much as 10% during the 2014-2015 season for a limited production of 34 million tons. The second largest shipper last hit a comparable level in 2009-2010 when output was at 32.4 million tons.
Drought has been present in regions across the Southeast Asian country this year with 49 out of 77 provinces experiencing rainfall below the 30 year average on May 31st. Farmers surveyed by Bloomberg say that yields may fall from 20% to 50% because of both unfavorable weather conditions for planting and a lack in water supplies.
Thailand’s subsidy program, which consists of the government purchasing rice from farmers at a price higher than market value, ended in February after being established by recently deposed Prime Minister Yingluck Shinawatra in 2011. Exports from the country fell to 6.72 million tons from 10.6 million last year when its reserves expanded to 12.8 million from 5.62 million says data from the US Department of Agriculture.
India, the largest shipper, has also suffered from dry weather which the Food & Agriculture Organization (FAO) of the United Nations forecasts will lead to global stockpiles declining for the first time in a decade. The FAO predicts supply from India to drop 1.2% to 157.5 million tons.
The material has been provided by InstaForex Company – www.instaforex.com
Related Posts: