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Published on November 30, 2007

Government warehouses will also have to accept a further 9 million tonnes from farmers under the new pledging programme for the current harvest.

However, Foreign Trade Department deputy director-general Vichak Visetnoi yesterday said Thai rice exporters had a great opportunity to benefit from the state of supply and demand in the world market.

Next Tuesday, the ministry will open bidding on 511,730 tonnes of white rice, to serve rising demand in the world market. And it plans to release further stocks, because of a shortage of rice exports from Thailand's two major rivals: India and Vietnam.

The Indian government has announced a temporary suspension of white rice (non-basmati) exports, because of a shortage for domestic consumption. Vietnam has also placed stringent controls on rice exports, because of limited production.

Vichak said Thailand's stockpile gave traders a great opportunity to increase their exports to world markets before the end of the year.

The government expects Thailand's rice exports to exceed 9 million tonnes this year, rising above an earlier target of 8.5 million tonnes.

The department reported that exports reached 8.21 million tonnes between January and this past Monday, up 22.9 per cent from the same period last year. The price for Thai white rice has also risen 9.71 per cent year on year to US$373 (Bt12,600) per tonne, from $340 last year.

Vichak said Thai rice exports would enjoy a brighter future next year, because India would continue to suspend its exports until mid-year, and world demand would rise.

Thailand is the world's largest rice exporter, followed by Vietnam and India.

Global rice consumption is expected to rise to 424 million tonnes next year, from 418 million tonnes this year.

Petchanet Pratruangkrai

 The Nation