According to reports, the rice will be allocated in three ways: part sold to ethanol producers, part distributed to the poor, and the rest sold to rice traders for export.
Lower Indian prices to undercut Thai rice
“We were shocked to hear the volume because India has set its selling price at just US$230 per tonne,” Chukiart said.
He noted that Indian rice exporters may spend an additional US$30 per tonne to upgrade quality to export standards, then sell it at between US$280 and US$300 per tonne—significantly lower than current Thai export prices.
At present, Thailand exports 5% polished rice at US$365–370 per tonne. At these prices, farmers receive only 5,000–6,000 baht per tonne of paddy, compared with 11,000–12,000 baht per tonne last year.