Thai rice price hits 2-year low at $608 a tonne

BANGKOK (REUTERS) - Thailand's 5 per cent broken grade white rice fell by 8 per cent on Monday to US$480 (S$608) per tonne, the lowest since June 2011, after the government implemented a cut in its intervention price, traders said.

The same grade fetched US$520 a tonne on Friday.

"The cut in the Thai intervention price has sent a signal to the market that global rice prices are on a downward trend and it is very likely that the Thai government may release its stocks soon to minimise losses," said a Bangkok-based trader.

The government has cut the price at which it buys paddy from farmers by 20 percent to 12,000 baht (S$489) per tonne from 15,000 baht in a bid to reduce losses incurred by the programme.