Rice prices in Laos stable despite slump in Thailand
Rice prices in Laos stable despite slump in Thailand
The price of rice in Laos is still stable despite the falling price in Thailand, with the Thai g overnment taking steps to find a solution to the problem.
The price of Grade A paddy sticky rice in Vientiane costs on average 3,100 kip per kg, while that of Grade A paddy white rice is 3,800 kip per kg. Additionally, the cost of polished sticky rice is 8,300 kip per kg and 10,000 kip per kg for polished white rice, according to the Domestic Trade Department.
However, some provinces have experienced a decrease in the price of polished sticky rice and polished white rice of 1,000 kip per kg, such as in Oudomxay.
Overall, the market value of paddy sticky rice during the same period last year increased by 2.37 percent, while that of paddy white rice increased by 4.51 percent. Polished sticky rice increased 0.78 percent and polished white rice increased 3.18 percent.
Last year, the Ministry of Agriculture and Forestry encouraged farmers around the country to meet a quota of 4.2 million tonnes, which increased th e per capita level of rice for each person to 600kg a year. The government plans to mobilise farmers next year to further increase production levels to 4.35 million tonnes.
The country allocated 2.5 million tonnes of rice to national food security. 1-1.5 million tonnes were apportioned to the production of rice-based food products and 100,000 tonnes of seeds were sold for the export market.
To reach the production target, the government plans to expand the number of rice plantationsto 1.03 million hectares and to further increase the use of irrigation systems to ensure the water supply is stable for each season, in particular for small and medium d flatland areas.
But the efficiency of rice production is highly varied throughout different regions of the country. Some provinces are only able to produce sufficient rice for subsistence consumption while border areas often trade with neighbouring countries where higher profits can be obtained.
Rice is listed as one of the top five commercial crops in Laos. Over 70 percent of the population is dependent on rice production as a main source of income.
The fast paced growth of the country's economy and high demand in the market are the main factors driving up the price of rice in comparison to the last few years.
In 2012, the paddy sticky rice price average was 1,000-1,500 kip per kg, but quickly rose to 2,000-2,500 kip per kg in 2013 .
Some Asean countries have expressed interest in purchasing rice from Laos, but the demand for large quantities and substandard quality of the product in contrast to other producers have stifled the crop's comparative advantage on the international market.
