Thailand’s record accumulation of 16 million metric tons of rice in reserve from a state-buying program which sparked concern from the International Monetary Fund (IMF) will likely contribute to lower rice prices next year as global harvests expand. The third largest shipper began buying rice from farmers at above-market prices in 2011 to boost rural incomes, and despite warnings from the IMF that the program will probably generate greater losses and should be abandoned, the government states that it will continue with the program. World stockpiles are expected to increase 1.2% to 109.3 million tons in 2013/14 and output will climb to an all-time high of 474 million tons – 2 tons more than global demand. Thailand was once the world’s top exporter of rice, however the country has spent US$21.3 billion to buy 29 million tons of rice from farmers since October, 2011 causing the country to drop in rank.
To receive relevant news stories with summaries provided by GAI Research & Insight, subscribe to Global AgDevelopments, our free bi-weekly enhanced eNews service