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Published on April 25, 2008

Petchanet Pratruangkrai

The Nation

Skyrocketing prices have created turmoil in the rice market, as consumers stampede to stock up for fear of a looming shortage and modern retailers and grain dealers rush to order more supplies.

The Thai Rice Packers Association said yesterday that orders for 5-kilogram packs from the modern trade had soared by 43 per cent from 1.98 million bags last month to 2.84 million this month.

Tesco Lotus demanded the most at 1.2 million packs, followed by Big C at 600,000, Carrefour and Makro at 350,000 each, and Tops Supermarket 150,000.

Robust demand among modern retailers is one of the major factors roiling the market, as well as driving the rice price up because of unbalanced supply and demand.

The Commerce Ministry has urged consumers to moderate their purchases as prices should settle down and domestic supplies are adequate.

Yangyong Phuangrach, director-general of the Internal Trade Department, said stocks were enough for consumption all year long.

He called for consumers to calm down, as the agency found that they had doubled their purchases of rice, despite no change in daily consumption.

The government will check inventory levels of modern traders and inspect prices at each store to ensure that consumers are not victimised by speculation or price gouging, he added.

Somroek Tangpiroonthum, president of the Thai Rice Packers Association, said all packers had been stepping up shipments to modern retailers since early this year, but particularly this month.

Supplies to modern retailers of Saendee brand rice have increased from 400,000 to 800,000 packs, Royal Umbrella from 290,000 to 440,000, Mah Boonkrong from 290,000 to 440,000, Kaset from 360,000 to 500,000, and Benjarong from 180,000 to 300,000.

Consumers have turned to shopping for their rice at modern retailers, so some brands have disappeared from the shelves for a while, he said.

But now deliveries to the modern trade will return to normal and will be increased in the following months as orders rise, he added.

The modern trade accounts for 30 per cent of domestic rice sales, with wholesalers and other retailers making up the rest.