The importers say the price of the Thai product, the main type imported to Hong Kong, fell from its peak of about US$1,245 per tonne four weeks ago to between US$1,080 and US$1,200 a tonne recently. That was a decline of 17.2 to 25.5 per cent.

'I'm surprised about the price drop,' said Yim Chun-wah, a rice importer and wholesaler in Hong Kong. 'This is because Thai fragrant rice only yields once a year, from October to December. While the stock for last year's crop is decreasing and Thai rice prices have been rising, the price should go up instead.'

According to Thailand's Rice Exporters Association, the indicative export price of grade A Thai Hom Mali rice - also known as fragrant rice - has fallen by 14 per cent in five weeks from US$1,245 to US$1,092 per tonne.

Hong Kong imports 90 per cent of its rice from Thailand, the world's leading exporter of the product.

Anthony Lam Sai-ho, operations director at Golden Resources Development, which sells 18 rice brands in Hong Kong, said the recent drop in Thai rice prices was due to the fresh supply of second-crop white rice, harvested in May and June.

This has brought the prices of other rice down as well, he said.

'Supply is increasing while there is no fresh demand from overseas buyers,' Mr Lam explained.

Despite the slump, the current price is still a lot higher than it was last October - when export prices of Thai fragrant rice were about US$600 to US$700 per tonne - or at the beginning of this year, at US$800 to US$900 per tonne, Mr Yim said.

Many importers purchased extra rice before prices peaked in mid-May. With sufficient rice stockpiled, there is no need to buy more, even as prices drop.

'The price has fallen a bit but no one dares to purchase rice now, because we don't know if it will continue to drop,' said James Foo Che-fuk, chairman and managing director of rice importer Kwong Sun Hong.

Democratic Party legislator Fred Li Wah-ming yesterday said the Consumer Council should check rice prices more closely.

'I am not suggesting the government control rice prices,' said Mr Li, the party's spokesman for consumer rights. 'But rice is a basic necessity. It deserves a closer watch.'

He also urged rice importers to release more information about prices.

Supermarket chain Wellcome - which increased the retail price of rice by 10 to 30 per cent last month - said its suppliers had not cut prices. A spokeswoman for ParknShop, which also marked up prices last month, said it kept in close contact with suppliers and it would adjust prices if there was room for reduction.

Andy Chung Wing-fai, owner of the Heung Shing Restaurant in Quarry Bay, did not expect his suppliers to reduce their prices. 'Unless something big happens, suppliers will not cut prices,' the restaurateur said, adding that they usually only increased prices. 'At least the price has been stable for the last two weeks.'