The Thai Rice Packers Association has announced a 3 baht/kg price increase for packed rice, to 20 baht/kg, effective in September, citing increased production costs.

The association’s president, Yongyut Phurkmahadamrong, admitted that the price increase of packed rice will affect most consumers, but said that the adjustment is necessary.

He said the Internal Trade Department may, however, consider producing Blue Flag packed rice, for sale at a lower price to help the consumers.

The price of unmilled Thai rice has increased to a record high this year, after India, the world’s largest rice exporter, suspended exports. Thai rice may fetch higher export prices if rice cultivation in China suffers extensive damage from recent flooding in several parts of the country.

Thai PBS reporters conducted a survey in several markets and found that the price of rice per bag, of between 40kg and 45kg, has already increased by 80-90 baht. For instance, the price of Sao Hai rice has increased from 920 baht to 1,010 baht per bag, while the price of Hom Mali rice has increased from 38 baht to 40 baht per kg.

One consumer told Thai PBS reporters that he had changed from buying packed rice, from the market or department store, to buying directly from a wholesaler, which is somewhat cheaper.

Food prices have been increasing since the beginning of this year, with the price of one serving of rice or a bowl of noodles at street food stalls starting at 50 baht.