Prices of Thai rice likely to rise soon

07 July 2010
DOHA: Prices of rice imported from Thailand are expected to go up soon in the local market due to an increase in freight charges, say traders.

The severe drought in Thailand, the world's largest rice exporter, could also have an impact on the local market in the months to come. However, there is no shortage of Thai rice in the market.

Demand for Thai rice in the local market has gone up significantly after India, another major exporter of rice to Qatar, imposed a ban on the export of non-Basmati rice.

Thai rice is popular among expatriates from Far Eastern countries while many loyal customers of Indian non-Basmati rice have also switched over to Thai brands, following the Indian ban. These brands are also priced lower compared to the popular Basmati brands imported from India and Pakistan.

"Freight charges for Thai products have almost doubled. This will definitely lead to a rise in the prices of future stocks, particularly rice," said an official of a leading hypermarket.

He said prices could go up at least by five percent when new stocks arrive. He said the drought in Thailand had not so far caused a shortage in supply of rice in the local market.

The impact could, however, be expected after next month. Thai Rice Mills Association recently said that rice output for the next crop cycle which ends in August could fall to as little as two million tonnes from a forecast of five million tonnes.

Thailand produces about 20 million tonnes of rice annually in two to four crop cycles and exports about nine million tonnes.

The official said retailers all over the country were now awaiting the Ramadan price list for food items to be issued by the Ministry of Business and Trade. The Ministry has already issued a list of brands that will undergo a price freeze during Ramadan but the prices are yet to be announced.

© The Peninsula 2010 

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