Thailand: Government Procurement Lags Due To Higher Market Prices

Thailand's Commerce Ministry has so far been able to buy only 39,381 MT of rice from farmers under the current rice intervention program as higher local market prices are making farmers reluctant to sell their paddy stock to the government .

The government had aimed to buy 1 million-2 million MT of paddy rice under the current intervention program. However, the government will actually buy much less because very few farmers are participating in the program.

Thailand is the world's largest rice exporter. It exported 7.5 million MT in 2006 and is likely to ship around 9.3 million MT in 2007.