The Russian government is demanding that all rice exported from Thailand be certified by the Agriculture Department, because it claims to have found a chemical substance mixed into some Thai rice. The demand for certification is aimed at guaranteeing that Thai rice contains no chemicals.

Rice Exporters' Association director Chanin Hansuebsai said the Russian requirement would affect Thailand's rice-export image, because it would lead other importing countries also to question the quality of Thai rice. Thai rice exporters will also have to shoulder the cost of export-guarantee certification.

Chanin said Thai white rice had long been known for its high quality, and previously Russia required export certification from all other rice-exporting countries except Thailand. "This requirement has been drawn up to protect the Russian domestic rice industry. It is a non-tariff barrier that constitutes an unfair trade practice against Thailand," he said, adding that the association would soon ask the Foreign Trade Department to solve the problem. The Commerce Ministry reported the value of Thai white-rice exports to Russia fell 15.7 per cent to US$13.9 million (Bt483 million) last year.

Deputy Commerce Minister Oranuj Osathananda said Thai rice farmers, millers and exporters alike must maintain the quality of Thai rice, in order to preserve the Kingdom's market share. Many rice-importing countries have increased their demand for Thai rice, and Thailand should take the opportunity to raise its market share by further developing the quality of its rice.

Thailand is the world's largest rice exporter, with an average export volume of 7 million to 8 million tonnes of rice per year. It is followed by Vietnam, which exports 4 million to 5 million tonnes annually.

Rice Exporters' Association president Chookiat Ophaswongse said the world's rising demand for rice would likely ensure that Thailand met this year's rice export target of 8.5 million tonnes, worth Bt120 billion.

But if the baht remains at a rate stronger than 35 to the US dollar, the value of the country's rice exports will fall short of that target.

Petchanet Pratruangkrai

The Nation