Rice farmers, millers and exporters have agreed to the government’s plane for the country to cut rice production in the 2016-17 crop year to 25 million tones of paddy from 30 million on average.
After the meeting with their representatives on Monday, commerce permanent secretary Chutima Bunyapraphasara said all parties had agreed to the plane to slash the output to respond to domestic and global demand. That amount of paddy will translate to 16.5 million tonnes of milled rice.
Thailand usually produces 30 million tonnes of paddy or 19.8 million tonnes of milled rice, split evenly between domestic consumption and exports.
Ms. Chutima said paddy price were expected to stay unchanged this year at 7,500 to 8,000 bath a tonne, while Thailand would export only 9 million tonnes, 60-70 % of which would be newly harvested grain.
Suthap Kongmark, president of the Thai Agriculturists Association, said farmers agreed with the plan after the government had provided much assistance in recent year.
Thai media also reported drought was a major reason for the cut. Beside, farmers were contented to have their representatives in the discussion.