Rice pricing plan in Thailand creates global uncertainty

In the near future Thailand's government will begin a new major pricing scheme for rice that could have a huge impact on the world's largest rice exporter. This pricing scheme could effect Thailand's position as the worlds top rice exporter, allowing rival countries such as India and Vietnam. The original idea for this scheme came from a promise by the then Pheu Thai Party to secure votes in the elections. The pricing scheme will see the government pay 50 percent higher prices for white rice and for fragrant rice. Already four million farmers has signed up for the new scheme. The UN Food and Agriculture Organisation economist David Dawe says well the higher pricing may lead to higher product in the longer term, there is uncertainty as to what the program's full effect will be. Read more ...