Thailand Boosts Rice And Palm Oil Reserves For Drought
Thailand is increasing rice reserves by 30% and crude palm oil reserves by 20% to protect food security and stabilize prices amid El Niño-driven drought concerns. Domestic rice and palm oil supplies are expected to remain adequate, though i
Withayakorn Manikhnet, director-general of the Department of Internal Trade under the Ministry of Commerce, announced that the department has prepared a plan to address drought caused by El Niño. The proposal calls for increasing reserves of rice and crude palm oil under the Strategic Rice Reserve program to safeguard the country's food security and stabilize markets. The department suggests raising rice reserves by 30 percent and crude palm oil reserves by 20 percent to mitigate risks to supply and domestic prices.
Withayakorn explained that despite rising global rice stocks, prices have not fallen significantly—a sign that other countries are accumulating stocks for their own food security and to prepare for potential drought. Crude palm oil prices have also remained stable. Thailand, as a major producer of both rice and palm oil, is unlikely to face shortages from El Niño-related drought, and prices for domestic rice and packaged palm oil are expected to rise only moderately thanks to adequate stocks.
Products requiring closer monitoring are cassava and corn, which Thailand must partly import as domestic production is insufficient. The department is working with consumer product manufacturers such as soap, toothpaste, and shampoo producers to maintain adequate supply without raising prices, though some items have discontinued promotions, causing slight price adjustments. Retailers are being encouraged to rotate promotional offerings to help manage costs.
