Floods have inundated farms and some rice mills in central parts of Thailand, threatening to delay at least 300,000 tonnes of exports due for shipment mainly to Indonesia and Africa this month. Swollen rivers were hampering the movement of barges, while ships at the ports were unable to load cargoes in the face of heavy rains, three traders said on Wednesday.
Which will push up prices of the staple that have already been supported by a government intervention scheme. "The situation is really bad as it is raining non-stop, a lot of mills have been affected and a lot paddy which was lying around in the open or under tarpaulin has got submerged," said one trading manager with an international rice exporter in Bangkok. "We see it as a serious problem.". Thailand's prime minister warned businesses on Wednesday not to take advantage of flooding around the country to push up prices as residents of Bangkok cleared supermarket shelves, worried that the capital could be swamped in coming days.
Two traders confirmed that at least 300,000 tonnes of rice exports from Thailand would get delayed, forcing buyers to seek alternative origins, such as India and Pakistan.. "Even loading for vessels which are waiting for cargo will get delayed," said another trader from Bangkok. "It is raining heavily, so loadings have fallen and it is difficult to get cargoes alongside the vessel."