Decrease in rice prices

14 03 2011

According to this article, bumper crops of rice have been reported in Thailand, Vietnam, and India known as major growing countries. Also, good crops have been indicated in major consuming countries such as Philippines and Indonesia. This will increase the supply due to the large number of producers and the high production. As more countries produce more rice domestically, countries such as Philippines and Indonesia will reduce their imports. In addition, three benchmark prices for rice in Thailand, Vietnam and the United States have dropped by 8 percent in the past few months. Since there is a drop in the price of rice, as shown in the diagram below, it will result in an increase in the quantity demanded for rice.





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18 03 2011

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