Thailand Proposes 30 Pct Rise In Rice Reserve, 20 Pct In Crude Palm Oil

By Kenny Teng

BANGKOK, Sept 25 (NNN) -- Thailand’s Department of Internal Trade plans to increase the country’s strategic rice reserve by 30 per cent and crude palm oil reserve by 20 per cent as part of preparations for potential drought caused by the El Niño phenomenon.

Department director-general Wittayakorn Maneenet said the proposed increase in safety stocks was aimed at strengthening food security and providing a mechanism to stabilise domestic markets amid potential supply and price risks.

“The reason for proposing an increase in the safety stock is that our monitoring of global rice stocks shows that supplies have increased, but overall rice prices have not fallen.

“Despite the increase in global rice stocks, rice prices remain high, reflecting the fact that countries have begun purchasing rice for stockpiling to ensure domestic food security and prepare for possible drought,” he said in a statement.

Witthaya said crude palm oil prices had also remained relatively firm despite changes in supply.

He said Thailand was unlikely to face shortages of rice and palm oil due to El Niño, as the country was a major producer of both commodities.

He added that prices of milled rice and bottled palm oil were not expected to rise significantly because domestic stocks remained sufficient and shortages were unlikely.

On measures to manage consumer prices, particularly those of food, beverages and daily necessities that depend on agricultural raw materials, Witthaya said the department was closely monitoring the supply and prices of agricultural products, including oilseed crops.

The department had also held discussions with manufacturers of essential consumer goods, including soap, toothpaste and shampoo, urging them to maintain sufficient production.

Witthaya said there was currently no policy to increase prices, although some products had become more expensive after promotional campaigns were discontinued.

The department also urged retail and wholesale chains to rotate promotional campaigns for selected products to help manage consumer prices.

--NNN