Sacred white oxen at Thailand’s plowing ceremony May 13 predicted a big rice crop, an ominous sign for a government running out of space to store vast stocks after two years of buying at above market prices to help farmers.
Thailand’s Agriculture Ministry forecasts paddy output of 27 million tonnes in the 2013-14 main crop in November, up from 26 million tonnes a year earlier, an official at the ceremony said.
By choosing maize and grass over other delicacies, the oxen also signalled large harvests for the May-November season.
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A state policy of paying farmers some 50 per cent above market prices, and its unwillingness then to sell the rice at a loss, has already eaten up available storage space, heaping pressure on the government to decide what to do.
A trial donation last month of 40 tonnes as humanitarian aid to poor villagers in Phitsanulok province, which a Commerce Ministry official said would be followed by a few million tonnes more, drew complaints it had been stored too long.
Milled rice stocks have risen to 17 million tonnes, almost half of global trade of around 38 million tonnes. A big harvest could add around 10 million tonnes to stockpiles this year.
Thai officials have suggested renting air force hangars for storage and the government is considering building more silos, although the cabinet would have to approve the extra spending.
