Thailand Attempts To Raise Rice Exported Prices With Vietnam

Thailand and Vietnam are working on an agreement in an attempt to raise the price of rice exports, a Thai Government official said on May 29. Thailand and Vietnam account for about 10% of the total global production of coarse rice, and about 26% of global exports. The two countries’ rice exports rank second and third in the world, respectively.
Rice prices have been low for more than 20 years, but production costs have been rising. The cost prices of food have been soaring for months this year, creating a crisis for food-exporting countries. By 2022, Thailand’s crushed rice export prices are 16% higher than that of India, while Vietnam’s exports this year are 240,000 tons lower than last year.
A Thai government spokesman said raising the price of rice could help increase farmers’ incomes, and thus improve bargaining power and its influence in the global market. The Vietnam Food Association said it is unreasonable to talk about raising rice prices when global food prices are increasing, but it will strengthen the management of rice exports to ensure its own food security.