Farmers in the Northeast have cheered a more than 50 per cent surge in the region's staple food - sticky rice. The price has jumped from Bt1,300 per 100 kilogram sack earlier this year to an historic high of more than Bt2,000 per 100kg sack.

Thai Rice Exporters Association president Chookiat Opahaswong pointed to two factors behind the price surge - China's growing appetite for glutinous rice and a supply shortfall there following recent floods.

Exports to China have reportedly risen 600 per cent in volume terms. Kasikorn Research Centre forecasts exports of sticky rice to China will total Bt945.9 million this year.

Total exports of sticky rice reached a record 308,277 tonnes, or Bt4.65 billion, in the first nine months of this year.

In China, glutinous rice is used to make rice wine and snacks such as dumplings.

Demand rockets during festivals such as the lunar New Year, when sticky rice is used to make desserts like nian gao or sticky cake.

Demand is also rising in Japan, as an ageing population opts for softer foods.

The Northeast was largely unaffected by the recent floods, while the torrential rain brought by Typhoon Xangsane brought a quick end a prolonged drought in the region, said Chookiat.

Kasikorn had earlier forecast that the price of sticky rice, which accounts for only 3 per cent of rice exports, would reach Bt10,000 per tonne. The price, as of yesterday, was double this forecast. Chookiat said sticky rice was selling for US$560 (Bt20,496) per tonne FOB, while jasmine rice was selling for $500 per tonne FOB.

Chookiat said he doubted Kasikorn's forecast that sticky rice could maintain its current price next year as Chinese production would probably recover by then.

Kasikorn has also forecast that the export value of glutinous rice will reach Bt7 billion this year and the export volume will reach a record 480,000 tonnes.

Since 2004, China has surpassed Malaysia, Indonesia, the United States and Taiwan as the largest importer of Thai sticky rice.

Ki Nan Tsui

The Nation