BANGKOK (Commodity Online) : Thailand’s National Rice Committee will meet soon to assess the drought situation in the country and find ways to alleviate the problem.

Thai Deputy Prime Minister overseeing economic affairs Trairong Suwankhiri said this year's dry season is severe and has affected rice production.



The Agriculture and Cooperatives Ministry was monitoring the situation closely. Reservoirs were down to 65 per cent of capacity, 56 per cent less than this time last year.

"One of the reasons for this year's water shortage is the closure of dams in the upper reaches of the Mekong river in China," Mr Trairong said. "It is the Foreign Ministry's responsibility to discuss this issue with China."

The Kasikorn Research Centre reported that the water crisis was expected to lower gross domestic product growth this year by about 0.06 per cent.

The leading think-tank forecast that the impact on the agricultural sector could be the most severe in five years, and the damage could be at least six billion baht.

The tourism sector could also be affected. Revenue losses could be as high as two billion baht between March and April.

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