The Lao government has decided to release stockpiled rice to stabilize the market price amid a shortage of rice supply due to the impact of floods.
Rice prices began to soar in June as a series of floods affected many areas of the country, especially the country’s central and southern provinces, resulting in farmers stockpiling rice for their own consumption.
The price of rice rose by more than 20 percent above the normal rate, according to a report by Vientiane Times.
Accordingly, the Vientiane Industry and Commerce Department has directed Kamphaeng Phet Chaengsavang Agriculture Promotion to sell 2,000 tons of rice after the government and the company signed a contract to that effect.
Polished Grade B sticky rice is on sale for LAK 6,500 per kg, from September 23-30, LAK 2,000 per kg less than the current market price, a total of five locations in Vientiane, namely the Talat Xaoban Sa-ard, the Vientiane Foodstuff State Enterprise, the Lao-ITECC, the Aussie Lao fresh market, and the Ms Chanpheng rice mill.
The Lao government releases stockpiled rice every year when the market price is unstable.
The rice supply shortage has affected the country’s export capabilities despite high overseas demand.
Laos hopes to export 50,000 ton of polished rice to China under an agreement between the two countries, but Lao rice exporters might be unable to meet the target due to the impact of the floods.