Wider field of players likely for EU rice quota

With the rising number of new rice exporters, the Foreign Trade Department is likely to allocate the European Union's quota to more new players next year to ensure fairness to all traders.

Normally, only the country's top 20 rice exporters enjoyed the EU's quota allocation in past years, due to their high export capability.

"The department will this year allocate this quota to more new players to ensure that the rice trading system is fair to all involved," said Apiradi Tantraporn, director-general of the department.

The allocation of the EU export quota is expected to be finalised this week in order to ensure the first shipment in January.

The EU has allocated its rice export quota to many countries, including Thailand, India and the United States.

For next year, Thailand gained an export quota of 21,455 tonnes for white rice, and 52,000 tonnes for white broken rice - with zero tariffs for export under the quota.

The first shipment will consist of 10,727 tonnes of white rice and 36,400 tonnes of broken rice. The second batch of 5,364 tonnes of white rice will be shipped in April, while the last shipment will begin in July and comprise 5,364 tonnes of white rice and 15,600 tonnes of broken rice.

It was reported that many exporters and millers had become interested in the EU's rice export quota next year to compensate for an expected drop in exports.

Chookiat Ophaswongse, president of the Thai Rice Exporters Association, said the Kingdom's 2009 rice exports were expected to drop by at least 5 per cent from this year's 9.5 million-10 million tonnes.

He said that prices would drop next year following the increase of stocks for domestic consumption and sluggish trading in the world market.

According to the United Nations Food and Agriculture Organisation, world rice trade is expected to drop by 2.8 per cent to 28.25 million tonnes next year from 29.07 million tonnes this year.

"It will be a tough period for rice exporters next year, due to the negative factors of lower prices and slowing world economic growth," said Chookiat. He added that more foreign countries would start exporting again next year, including India, Cambodia and Indonesia.

India has banned the export of non-basmati rice since the middle of this year to secure stocks for domestic consumption. However, its government is likely to allow exports to begin again soon, due to the country's high production.