Business & Investment

Thailand pays attention to US hiking plan with Vietnam

Thailand and Vietnam are considering working together to raise rice prices to increase bargaining power in the global market, government spokesman Thanakorn Wangboonkongchana said.

According to Prime Minister Prayut Chan-Ocha, Thailand and Vietnam need to jointly raise rice prices and increase bargaining power in the global market. This is a move that threatens rising food costs for consumers around the world.

Thailand and Vietnam are the second and third largest rice exporters in the world, respectively. Two major rice exporters are trying to raise farmers’ bargaining power in the global market after more than 20 years of low prices.

This will benefit millions of rice farmers in both countries who are suffering from rising costs. However, the timing may not be right, as India may limit rice exports after similar movements in wheat and sugar.

India is another major rice exporter with over 20 million tonnes per year, compared to 6 million tonnes each from Thailand and Vietnam.

India’s rice export ban could exacerbate supply cuts that began with Russia’s invasion of Ukraine in late February, as both countries are major grain and fertilizer exporters.

Thailand’s move could also exacerbate ongoing food inflation. The United Nations estimates that global food prices have risen by more than 34% over the past year, primarily due to the third year of the COVID-19 pandemic.

COVID-19 already has a wide range of impacts on food security in Asia, destabilizing the food supply chain in various ways. According to the Food and Agriculture Organization of the United Nations People experiencing serious food insecurity The world increased by 148 million in 2020 to 928 million. This is 12% of the world’s population.



Thailand pays attention to US hiking plan with Vietnam

https://www.thailand-business-news.com/markets/commodities/90396-thailand-eyes-rice-hike-plan-with-vietnam Thailand pays attention to US hiking plan with Vietnam

Back to top button