The prices for paddy rice have risen after the Pheu Thai Party announced its plan to buy rice from farmers. There has also been rice hoarding since the policy was announced.

During the election campaign, the Pheu Thai Party said it will buy rice from farmers at 15,000 baht per ton, and will eliminate the income guarantee program introduced by the Democrat Party.

Monchai Rungchanchai, the owner of the largest rice miller in the Northern Province, Singto Thong Rice Miller, said rice millers in Kampangpetch Province are still buying rice from farmers as usual.

In fact, Monchai said rice millers are demanding more rice from farmers since they became aware of the Pheu Thai's policy, as rice prices should increase under the government's plan to buy the product yield.

He said middle men and rice mills are buying rice at 9,000 baht per ton, up from 6,000 to 7,000 baht per ton.

Monchai added that rice hoarding has been discovered among rice sellers and millers as they await the new government's policies, because they believe the policies will help raise rice prices.

Meanwhile, he said neighboring countries are also waiting to assess Thailand's policies.

He said rice export prices have risen from 500 U.S. dollars to 600 U.S. dollars.

He believes market rice prices will rise in the next two to three months, while paddy rice prices should increase to 12,000 baht per ton, and are unlikely to hit 15,000 baht per ton.

Source: TANN