HAWAII : The volume of rice traded globally is expected to take a dip next year due to weakening demand and the effect of floods on Thailand's rice production, according to the Food and Agriculture Organisation.
The United Nations' food agency said trade volume next year could fall to 33.8 million tonnes from the 34.3 million forecast for this year.
Meanwhile, Foreign Minister Surapong Tovichakchaikul said he had talked to his Vietnamese counterpart Pham Gia Khiem about the rice price next year on the sidelines of the Apec summit currently being held here.
As Vietnam was also hit by flooding, Mr Khiem was concerned that if the domestic price of rice went as high as the export price, it would pose an inflation threat to Vietnam.
Mr Surapong suggested that as a rice producer, Vietnam should be able to control prices for domestic consumption while allowing the export price to float higher.
Mr Khiem asked if the Thai government's rice mortgage scheme would increase the rice export price. Mr Surapong said the floods would result in lower rice production for the project, which would drive up the rice price.
The ministers agreed the global rice price would soar.
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