Speculation among traders and exporters is mainly to blame for tumbling rice prices during this harvest season, according to a senior researcher of Thailand Development Research Institute. Mr Nipon made the conclusion in a research article called "Why Hom Mali rice prices have fallen sharply? He said the traders had expected the rice prices in December to fall well below the future price quotes for rice in October. The higher than usual supply of Hom Mali rice this year was also to blame for the low rice prices, he said. The rice from previous harvests remained at a high volume in major rice millers' warehouses as many traders earlier this year had expected the rice price would surge due to the effect of El Nino.

Source: Bangkok Post November 05, 2016 23:47 UTC