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Published on November 7, 2007

Foreign Trade Department director-general Apiradi Tantraporn said yesterday that Thai rice was in high demand globally this year, which will drive exports to 9 million tonnes.

Thailand is the world's largest rice exporter, following by Vietnam and India. The country exported 7.27 million tonnes of rice worth Bt93.6 billion in the first 10 months of the year. Exports in October alone hit a three-year monthly high at 1.1 million tonnes. The Kingdom exported 10 million tonnes of rice in 2004.

"It is estimated that exports for the remaining months will exceed one million tonnes a month, which would ensure that total exports will go beyond the early target," said Apiradi.

Export rivals India and Vietnam have ordered their private sectors to temporarily suspend exports because of lower domestic supply. Also, if any exporters want to export, they must offer a very high price to buyers.

This has led to a widening of the gap between Thai and other rice prices to US$80 (Bt2,720) per tonne, forcing importers to purchase from Thailand.

Bangladesh has also turned to purchasing Thai rice, instead of from India.

Moreover, a freight shortage

problem, which had obstructed

Thai rice export opportunities since early this year, has been cleared. China had previously taken up large amounts of cargo space for shipping raw materials for building stadiums for next year's Olympic Games.

Apiradi added that as a result of these positive factors, prospects for Thai rice exports next year were bright.

Meanwhile, the government was able to release 888,328 tonnes of rice from its stocks as a result of last week's auction of 913,346 tonnes, generating Bt9.93 billion.

Although large stocks of rice were released for the bidding, the auction did not lower the market price, Apiradi said.

The government was able to bargain for an upper price of Bt402.11 million, compared to previous prices offered by bidders. This will decrease the rice stock burden, which costs Bt302 million a year to maintain.

Chaiyaporn Rice and Food Products won the largest lot of 164,859 tonnes of 2005-06 white rice, out of a total of 269,219 tonnes. The remaining stock was shared by four other firms.

Ponglarb won 101,636 tonnes from the total of 133,020 tonnes for the 2005 second crop of 5-per-cent white rice. It also won 15,039 tonnes of 25-per cent white rice.

The company also won the bidding for 68,098 tonnes out of a total of 85,878 tonnes of 25-per-cent white rice.

CP Intertrade won the biggest lot of jasmine rice - 134,495 tonnes from a total of 200,783 tonnes. The remaining stock was allocated to 13 other winners, with prices between Bt15,500 and Bt17,600 per tonne.

A stock of 45,173 tonnes of provincial rice was allocated to seven winners, with prices from Bt13,000 to Bt14,400 per tonne. Asia Golden won 100,143 tonnes of 5-per-cent white rice out of 139,208 tonnes for the 2004-05 harvest.

The Cabinet yesterday also approved a comprehensive plan to promote the production of Thai rice over the next five years (2008 to 2012) which would require a budget of Bt3.8 billion.

Internal Trade Department director-general Yangyong Puangprach said that the plan would include an increase in production capacity from 439 kilograms to 529 kilograms per rai by conducting research on rice strains, enhanced marketing, a rice information centre and the promotion of a futures market.

Petchanet Pratruangkrai

 The Nation