Rice exports banned, Economy in dire straits
Middlemen were stockpiling rice in a bid to drive prices up and increase profits. The plan worked, as a massive shortage caused domestic prices to skyrocket.
In response, the government bought 10 percent of rice that had been earmarked for export and sold it to the public from controlled shops at below-market rates. But the government’s efforts had little impact on the open market, as price of high-quality 100-percent long-grain rice had jumped over the preceding year from 32 baht per 15kg to 58 baht.
Apart from stockpiling, inflation was affecting standard items such as garlic, fish, bananas, plastic products, bandages and even brassieres.
Some poverty-stricken families, particularly in the north and northeast, turned to other means to make money.
In June, rice exports were banned for the first time since World War II. At the time, rice was the country’s top export earner. The move caused considerable concern overseas, especially among key rice-importing nations such as Singapore and Malaysia that had requested increased supplies of Thai rice to relieve their own shortages due to reduced production.