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Rice Packers Deny Price Hike, Saying They Only Ended Discounts

Thailand Jasmine Rice Packaged Bags Supermarket Store Grocery

The Thai Rice Packers Association dismissed claims of price increases of up to 30 baht for a five-kilogram bag of rice.

The association’s honorary president, Somkiat Makcayathorn, said there would be no price increase despite a recent increase in transportation, packaging and raw materials costs.

Somkiat, who is also the chief executive officer of a major producer of packaged rice, Patum Rice Mill and Granary Plc., explained that rice packers would only reduce the offered discount, resulting in higher retail prices that would still be lower than the suggested prices printed on the packaging.

In addition, he stated that rice packers would discontinue sale promotion strategies such as “buy one, get one free” offers, large discounts, and suggested retail prices.

According to Somkiat, the producers of packaged rice are competing with others by maintaining low prices, and this situation will persist throughout the second half of the year. He went on to say that rice packers have chosen to absorb the higher costs and business losses as market competition has intensified.

Meanwhile, rice mill operators have reported that rice supply is increasing as more off-season rice harvests flood the market, citing the recent decrease in rice paddy price from 9,600 to 9,900 baht a ton to 9,000 to 9,200 baht a ton.