Flood cause a big sway in consumer spending

The flooding in Thailand will probably affect people’s shopping habits given they will be more careful with their spending. Items most likely to be affected include agricultural and food products.

According to Director General of the Department of Agricultural Extension Att Intrarak, more than 10 million of Rais have been severely damaged by inundation, affecting over a million farmers altogether. While rubber plantations in the southern provinces have also been hard hit by flashfloods, sharply decreasing the nation’s rubber export value, despite the current all-time high rubber price of 130 baht per kilograms.

Meanwhile, the Rice Department will assist farmers by handing them 25,000 tons of high-quality, light-sensitive rice seeds suitable for growing year round. Co-operative Promotion Department will at the same time reserve a large amount of rice seeds to cater to farmer’s future needs.

Moreover, behavior of consumers in industrial sectors may shift due to concerns over the flood situation in general. People would likely spend more cautiously, particularly on luxury goods, electric appliances, automobiles, and real estate.

Source: http://thainews.prd.go.th/en/news.php?id=255311090009

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