BANGKOK, April 4: Thailand, the world’s leading rice exporter, insisted on Friday it had enough for domestic consumption but exporters warned of a crisis, as dealers hoard rice to sell overseas at current sky-high prices.

Prime Minister Samak Sundaravej tried to reassure the nation that the rapid rise in global prices, which have also driven up the cost at home, would not cause a shortage on local shelves.

He said the soaring prices had sparked panic buying, but insisted the country had ample rice reserves.

“It is impossible that there will not be enough rice for sale. News reporting makes people panic, causing people to buy 10 bags instead of one or two bags,” Samak told reporters during his weekly briefing.

“High prices now are due to supply and demand, and it will be like this only for this period,” he said.

The benchmark Thai variety, Pathumthani fragrant rice, was priced on Wednesday at $930 per ton, up 52 per cent from a month earlier, according to the Thai Rice Exporters Association. The group’s price survey is updated weekly.

Other rice-producing countries including India and Vietnam have announced export curbs to ensure domestic supplies, amid warnings from experts that governments in Asia could see public unrest if prices remain elevated.

Thailand has not announced any cut to exports but said on Wednesday it would release 650,000 tons from government stockpiles to sell locally at below the market rate.

Exporters say, however, that their own stocks are running low, blaming mills and middlemen for hanging on to supplies in the hope that prices will keep rising in the near future.

“The rice situation at present is in crisis,” said Korbsook Iamsuri, secretary general of the exporters association.

“Exporters are facing trouble because their rice stockpiles are running short, while no more rice is coming to fill the stocks. Few rice farmers have any stockpiles because most of them have no silos for storage,” she said.

“Currently, rice is most likely in the hands of middlemen and the mills,” Korbsook said.—AFP