Vietnam and Thailand to work to increase international rice prices – Companies


Vietnam and Thailand, the world’s second and third largest rice exporters, will work together to increase the international price of rice, in order to improve the financial situation of farmers, a government official revealed this Monday.

The adviser to the Thai Ministry of Agriculture, Alongkorn Phonbutr, explained in a statement that the two countries reached an agreement, after verifying that the price of rice on the international market is “excessively low” and “unfair” for producing countries and their farmers.

However, it did not give details about the price level set for the international market, nor did it give great details about the plan that it plans to put in place. Meanwhile, the price of rice on the international market has dropped from US$404 per ton in 2019-2021 to US$394 this year, although the price is expected to rise to US$400 per ton next year, according to a United Nations report. for Food and Agriculture (FAO) and the Organization for Economic Co-operation and Development (OECD).

Alongkorn also clarified that the agreement was reached during a recent official visit to Vietnam, in which the two countries resumed negotiations that began in May last year, with a view to mitigating what they consider low rice prices in an environment of rising inflation worldwide.

“[O preço atual] there is no logic with the increase in production costs, as well as the rise in fertilizer and fuel prices due to the impact of the covid-19 crisis and the Russo-Ukrainian war”, recalled the government adviser.

Alongkorn also said that farmers “are in debt” because of high production costs, which, in his opinion, could lead them to reduce rice production, which would exacerbate current food security problems.

The adviser also said that the price increase plan includes cooperation with rice producer associations and that they will seek to join other Asian producing and exporting countries.

In 2021, the world’s largest rice exporter was India, with 19.55 million tons, followed by Vietnam (6.24 million tons) and Thailand (6.11 million tons).


Source: Jornal de Negócios by www.jornaldenegocios.pt.

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