Thai PM warns on prices as flood fears grip Bangkok

Thursday, 13 October 2011 00:00 - - {{hitsCtrl.values.hits}}

BANGKOK (Reuters): Thailand’s Prime Minister warned businesses on Wednesday not to take advantage of flooding around the country to push up prices as residents of Bangkok cleared supermarket shelves, worried that the capital could be swamped in coming days.

Yingluck Shinawatra, a novice politician who became prime minister in August, said she had asked the Ministry of Commerce to keep a close watch on retail prices.

“I’d like to beg business operators: as people are suffering, I ask businesses to sell at cost price. Raising prices will lead to hoarding, which will not help solve the problems,” she told reporters at a flood crisis centre set up in Bangkok’s old Don Muang airport.

At least 281 people have been killed by heavy monsoon rain, floods and mudslides since late July and 26 of Thailand’s 77 provinces are inundated, according to the Department of Disaster Prevention and Mitigation.

The north, northeast and central plains have been badly affected and Bangkok -- which is only two metres (6.5 ft) above sea level -- is in danger as water overflows from reservoirs in the north, swelling the Chao Phraya river.

“The situation in Bangkok is fifty-fifty. Me and my mom are trying to grab everything and stock food for at least two weeks,” said Tassanapan Sirisuka, 32, shopping in a central Bangkok supermarket that had few bottles of water or instant noodles left.

High estuary tides due from Oct. 13 could push up the river level, especially if rain continues heavy, as on Wednesday.

There may be repercussions further afield. Shipments of rice to Indonesia and Africa may be delayed and prices of the staple -- already going up due to a government intervention scheme -- could be pushed higher around Asia.

Thailand is the world’s biggest rice exporter and farmers were supposed to be starting the main harvest early this month.

The government has already cut its estimate of the crop to 21 million tonnes from 25 million because of the flooding.

Some 1.55 million hectares (3.82 million acres) of farmland has suffered from flooding, the disaster department said.

Yingluck said the construction of flood barriers in three outer areas of Bangkok should be completed on Wednesday.

Bangkok city officials say embankments and the use of canals to channel water away should prevent serious flooding but Governor Sukhumbhand Paribatra has ordered all 50 districts to prepare evacuation plans, just in case, with rainstorms forecast for Oct. 16-18.