According to some sources, the price of rice has increased by up to 30 baht per 5 kilogram pack for packaged rice, however the Thai Rice Packers Association refuted these claims with explanations.
Mr. Somkiat Makcayathorn, honorary president of the association, said there would be no impact on rice prices despite the recent increase in transportation costs related to fuel, and the additional costs of packaging and raw materials.
Mr. Somkiat Makcayathorn, who is also managing director of a major packaged rice producer, Patum Rice Mill and Granary Plc, stated that rice packers would only lower the discount offered, resulting in higher retail prices, which would still be lower than the suggested prices shown on the package.
In addition, Mr. Somkiat said that rice packers would stop implementing sales promotion strategies such as “buy one get one free” offers, or substantial discounts and suggested retail prices.
According to the general director, packaged rice producers are also competing with each other by keeping prices low, and this situation will persist over the second half of the year. He continued by saying that rice packers are determined to absorb higher costs and possible trade losses in an environment where market competition has intensified.
On the other hand, rice mill operators reported that rice supply is increasing as out-of-season rice crops flood the market, citing the recent drop in paddy prices from 9,600-9,900 baht per ton to 9,000-9,200 baht per ton.
