Rice exports look promising next year: KRC

BANGKOK, Oct 30 (TNA) – Thai rice exports look promising next year with prices set to competitive with those of key rival Vietnam, according to the Kasikorn Research Centre.

The leading think tank reported the Rice Policy Committee’s efforts to revamp the price structure of rice mortgage and drain the rice stockpile would benefit the rice exports next year.

In the past two years, a mortgage rate for rice was set 30 per cent higher than a market price. It resulted in the rice stockpile surging to 3.7 million tonnes since most farmers are reluctant to redeem.

It made a rice price in the new season unable to increase and fuelled a rice cost for exports.

Under the price structure of the rice mortgage, it is expected prices of local and exported rice would decline.

So, KRC said, Thai rice would be in a better position to compete with that of Vietnam in terms of prices. It could regain a market share lost to Vietnam since a difference of the rice price is narrowed.

It conceded the committee’s efforts to drain the rice stockpile would affect local and export rice prices. But the government plans to sell rice in the stock in the forward commodity market in order to shore up local prices.

The move would help ease impacts on local prices of rice and benefit rice prices in the long run.

KRC projected a global rice trade would increase by 1.4 per cent to 27.86 million tonnes next year. It would contribute to higher demand for Thai rice.

Potential rice export destinations include Iran, the Philippines, and Brazil while key rivals such as Vietnam, India, and the United States are experiencing difficulties in exports. So, it is a good opportunity for Thailand to expand the rice export market next year.

TNA

Is rice part of a Thai`s staple diet, similar to say, China?

Sure is, Thai's eat a LOT of rice, breakfast, lunch and dinner 8)