Viability of Thailand, Vietnam rice price hike plan questioned without India’s participation
- India, the world’s largest rice exporter accounts for about 40 per cent of global supply, and sells the commodity at a cheaper price than Vietnam and Thailand
- Viability of pact between Thailand and Vietnam is being questioned by a top Thai official, amplifying opposition to a government-proposed plan for a rice cartel
A pact between Thailand and Vietnam to raise rice prices would be “impossible” a top Thai industry official said on Monday, amplifying opposition to a government-proposed plan for a rice cartel and questions over its viability.
Thailand’s government said on Friday it planned with Vietnam to create a pact between the world’s second- and third-largest rice exporters to boost their bargaining power and help mitigate rising production costs.
Vietnam has yet to confirm such a plan was being discussed.
Chookiat Ophaswongse, honorary president of Thailand’s Rice Exporters Association, said his body had not been consulted, and the idea was poorly thought out.
“Thailand and Vietnam are not the largest exporters, combined it’s less than India and would have buyers turn to competitors,” Chookiat told Reuters, adding rice cannot be stored for long enough while awaiting a climb in price.