Severe drought threatens Thailand's rice harvest


Thailand, the biggest Asian exporter of rice, is facing a major shortfall in its next crop.

A prolonged drought had led to a severe drop in water reserves for irrigation. Although monsoon rains have now arrived, officials say it may be too late for this crop cycle.

The warning comes at a time when rice prices are relatively low, in part because traders in Europe have been hit by a weakening euro.

Rachel Harvey reports from Bangkok.

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