Paddy prices in local markets have continued to drop despite rising demand in the world market and declining production in other rice-producing countries, according to a source from the Commerce Ministry.

Prices of paddy this week dropped to 8,500 baht a tonne from 9,400 baht in early February while fragrant paddy dropped to between 12,000 and 13,000 baht a tonne from 14,800 baht.

The source said the drop reflected large stockpiles in the country held by companies after some rice exporters could not sell rice they purchased from the government because Vietnamese rice was priced lower. The government sold around 4 million tonnes of rice to exporters last year.

Moreover, the government also announced it would release another 1 million tonnes of rice in its stock.

With prices plunging, farmers in the central region have planned a protest for today in Ayutthaya demanding the government increase compensation to them as well as enlarge the quota of compensation to each household.

Source: Bangkok Post