Rice price stable despite water shortage
Rice price stable despite water shortage
The rice price is still stable as per the government target despite many rice areas around the county being affected by a water shortage.
The late arrival of rain this wet season caused farmers in different areas, especially in Vientiane, to decide to cancel their rice planting.
The price of paddy rice is stable at 2,500-3,000 kip per kg, while polished rice is selling for 6,500-7,500 kip per kg, according to the Ministry of Industry and Commerce.
This price has continued to be stable for the last few years as the country was able to supply sufficient rice for the domestic market.
This wet season, more than 12,600 hectares of rice was damaged by disaster, the Ministry of Agriculture and Forestry reported.
However the government was able to encourage farmers to produce rice this year in both seasons to reach about 98 percent of the target or 4.1 million tonnes.
The rice price in each month from January this year has gone up and down, with middle men buying from farmers to sell for a profit.
The rice price during the harvesting season always falls and tends to rise again during the planting season.
This is a good opportunity for rice traders to buy paddy rice from farmers to store and sell when there is a rice shortage to supply the market.
Regarding disaster impacts, Lao economists expect that the rice price will be high next year as many farmers store their rice for consumption and traders store it for sale when the price is good.
To respond to the problem, economists have warned the relevant sectors of the government to prepare measures for augmenting the rice supply.
One of the more important measures would be for the government to encourage farmers in suitable areas to produce more rice in the next dry season to compensate for any shortfall.
The ministry may also authorise the importation of rice from neighbouring countries to maintain stability in pricing.
The growth of the country's economy is one factor to expand the rice price compared to the last few years.
In 2012, the paddy rice price was 1,000-1,500 kip per kg and rose to 2,000-2,500 kip or 6,000-6,500 kip for polished rice in 2013.
The rais ing of the rice price encouraged more farmers to grow rice crops on a commercial basis.
