Thai rice prices rebounded 3.8 percent

Thai rice prices rebounded 3.8 percent as traders’ hopes warmed after the government delayed a sale of its rice stocks, signaling no additional supplies would reach the market in coming days, exporters said on Wednesday.

The benchmark 100 percent B grade white rice rose to $545 per tone from last week’s $525 per tone as buyers realized supplies would not rise immediately since the rice sale was on hold, they said.

Source: Reuters.

No contamination found in Thai rice-based products.

The Department of Agriculture insisted that Thai rice-based products are not GM-contaminated, following the European Union’s complaint on contamination in Thai noodle exported by Thai President Food Plc. The exports have been recalled.

The department said it inspected raw materials of the export lot and found no contamination, but it will closely monitor the situation on fear that the complaint would affect Thai rice products and rice exports.

The EU said it found the trace of Bt63, a genetically-modified rice originated in China .

The department is afraid that this may lead to problems with the export of noodle to Japan , which imports a large volume and has been strict in GM contamination.

Source: The Nation.

Thai Present Government ready to buy Rice.

The government plans to increase rice purchases from farmers at assured prices by 60% as production rises.

The Rice Policy Committee, chaired by Prime Minister Abhisit Vejjajiva, yesterday overruled a decision the previous day by a panel chaired by Commerce Minister Pornthiva Nakasai.

Mrs Pornthiva had said buying another 1.5 million tonnes of second-crop paddy under the government price-intervention scheme was impractical, given the severe budget constraints it now faced.

The committee decided yesterday to go ahead with the plan to acquire an additional 1 million to 1.5 million tonnes of paddy in the second crop at 11,800 baht per tonne.

Mrs Pornthiva had said earlier that poor economic conditions would prompt the government to be more cautious in its spending plans

The government already plans to buy 2.5 million tonnes of paddy, including 100,000 to 200,000 tonnes of glutinous grain, in the second-crop season between March 16 and July 31, at a cost of 36 billion baht. The guaranteed price is also 11,800 baht per tonne.

Procurement of unprocessed rice may now be between 3.5 million and 4 million tonnes in the current season. Second-crop paddy output this season could be 8 million tonnes, compared to 6.5 million tonnes in the same season last year, according to the Agriculture Ministry.

The revised plan will probably be proposed to the cabinet next week.

Source: Bangkok Post.