Thailand To Become Top Rice Exporter
Thailand To Become Top Rice Exporter
Thai rice is expected to become more costlier in coming times on account of many factors such as the appreciation of the baht and the suspension of rice released by the government. With the concerns over drought rising in many countries including India Thailand looks to be set to topple India's status as the top rice exporter of the world.
Thailand may soon be returning to its status as the world's biggest rice exporter as its export volume in the first half of the year has surpassed India. The Thai Rice Exporters Association has indicated that Thai rice shipments abroad have become 5.2 million tonnes. This is much more than 4.5 million tonnes produced by India and 3.2 million tonnes produced by Vietnam.
The association has also indicated that Thailand could export around 9 million tonnes of rice this year. The price of 100% B grade Thai white rice has now reached $443 from $432. The price of benchmark 5 percent Thai white rice rose from $410 per tonne to $427. This is much more than $410 for Vietnam's rice.
The baht has strengthened from 32.4 against the dollar to 31.90. This has led to an increase in the price of Thai rice in dollars. The price of Thai rice is expected to increase in the coming months as the market is monitoring if the government will start selling rice from its stocks once again.
Pressure from domestic prices could also cause the price of Thai rice to increase. Last week, paddy white rice jumped from Bt7,000 to Bt8,500 a tonne, and it could reach Bt9,000 soon, according to experts. What is adding to the success of Thailand is the rising drought problem in many nations including India. Thailand may end up exporting more rice as a result of this.
The government is also considering selling rice rather than waiting for closing of warehouse inspections in Thailand. The government will sell rice using techniques such as opening bidding for general traders and selling on future markets. Contracts between governments are also being aimed for.
With the monsoon reviving late in India the South east Asian nation of Thailand stands to gain as lesser Indian exports enable Bangkok to gain better prices for the grain. This has turned out to be a good opportunity for Thailand to manage huge stocks at competitive prices.
Thailand will export around 500000 to 600000 tonnes of rice from the coming month. It will therefore take 3 years for the military government to sell 18 million tonnes which had previously been included in the rice buying scheme by the ousted Yingluck government.
The exact nature of losses to the Indian agricultural sector as a result of the late monsoon will only be ascertained once a few months have passed. There is not much that can be done at present to oust Thailand from its status as the top rice exporter in the world.
