Rice mills call for action as prices deteriorate

As Thai rice prices have hit a 20-year low, more than 90% of rice mills are facing losses while farmers are struggling with debt repayment.

- PHUSADEE ARUNMAS

Mr Banjong says many mills invested in rice at higher prices, with 5-6 million tonnes of paddy left in storage.

Banjong Tangjitwattanakul, president of the Thai Rice Mills Association, highlighted the sharp decline in paddy and white rice prices, which have reached a 20-year low. Prices have plummeted by 50% from last year, when white rice was selling at 10,000-12,000 baht a tonne.

The price of 15% moisture paddy has fallen to 6,200 baht a tonne, while the price of fresh paddy with 25% moisture is down to 5,000 baht a tonne.

The downturn has also caused price reductions for byproducts, with the price of rice bran decreasing by 40% and that of broken rice falling by 35-40%, resulting in more than 90% of rice mills experiencing a drop in revenue and significant losses.