THAILAND (1 August)

Widespread showers (20-80 mm) over central parts of the country in second dekad of July, reduced stress on rainfed maize and rice crops and increased irrigation supplies somewhat. In eastern parts of the country, heavy showers (80- 160 mm), maintained favorable moisture supplies for rice. In June, rainfall was between 80 percent and 50 percent lower than normal across central parts of the country, seriously stressing rainfed crops. Overall, although the 1997 monsoon season started on time, distribution of rainfall has not been good and some areas have not received adequate moisture for planting main season rice.

Rice production in 1997/98 is provisionally forecast at around 21.8 million tons, almost 600 000 tons higher than the previous year, though final outcome will depend heavily on weather conditions during the remainder of the monsoon season. Low rainfall in June and early July may result in delayed planting of the main crop and affect overall production. High prices are expected to encourage farmers to expand plantings, though recent devaluation of the Bath is anticipated to increase imported fertilizer and insecticide costs.