Rice crisis, pick one : “supply is adequate” or “unbalanced supply-demand”

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.

As usual, the gvt misses… a factor.

Rice is much cheaper since a few weeks in supermarkets… compare to the small shops up country.

So it makes sense for people to rush in Tesco and to buy and stock.

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

Since the beginning of the rice crisis, the authorities send conflicting signals : one day it’s the fault of the speculators, or the people hoarding, the day after it’s because of unbalanced supply and demand.

The outcome is easy : people don’t trust what the governement says…

They trust what they see on the ground : prices are going up.

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Thailand Crisis

Coup, Economic slowdown, Terror In the South... The situation is worsening in Thailand. Bumpy road like often before.

But this time, it's different.

The key to understand the present turmoil is the inevitable... succession of King Bhumibol.

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