Thai rice - Illustrative image (Source: blackseagrain.net)Bangkok (VNA) – The Thai Government plans to boost rice exports bynegotiating sales directly with other governments with the hope to supportaround 13 million local farmers – 20 percent of the country’s population.
Officialswill be sent to major importers of Thai rice in order to acceleratenegotiations, said Adul Chotinisakorn, director general of the CommerceMinistry's Department of Foreign Trade, adding that in some countries in Asia,rice imports are completely controlled by government procurement bodies.
SeveralSoutheast Asian importers will be targeted, including the Indonesiangovernment's procurement and logistics agency Bulog, the Philippines' NationalFood Agency and Malaysia's commodities procurement agency Bernas.
Accordingto the ministry's statistics, Indonesia and Malaysia import around 800,000tonnes of Thai rice per year, while the Philippines imports 1 million tonnes.
Thegovernment also hopes to engage traditional importers in the Middle East suchas Iraq and Iran, each of which currently imports about 1 million tonnes ofThai rice annually.
Previously,government rice sales played a significant role in supporting exports,accounting for about 20 percent of the annual total of between 8 million and 10million tonnes.
However,trade liberalisation in the past few years has made it easier to conductprivate deals, allowing the government to take a step back.
Althoughdemand has remained strong this year, Thai rice exporters say increasedcompetition is making it difficult to operate. A stronger baht has not helpedas competitors in Vietnam and India can now offer the crop at cheaper prices.
Limitedproduction is also expected to cut exports this year, preventing the countryfrom capitalizing on global demand. Farmers have been encouraged to grow otherprofitable crops such as cassava, corn and sugar cane.
TheThai Rice Exporters Association said it will closely monitor exports in thefirst quarter of this year and, if the baht continues to rise, may revise the2018 export target to below the previous forecast of 9.5 million tonnes. -VNA
Officialswill be sent to major importers of Thai rice in order to acceleratenegotiations, said Adul Chotinisakorn, director general of the CommerceMinistry's Department of Foreign Trade, adding that in some countries in Asia,rice imports are completely controlled by government procurement bodies.
SeveralSoutheast Asian importers will be targeted, including the Indonesiangovernment's procurement and logistics agency Bulog, the Philippines' NationalFood Agency and Malaysia's commodities procurement agency Bernas.
Accordingto the ministry's statistics, Indonesia and Malaysia import around 800,000tonnes of Thai rice per year, while the Philippines imports 1 million tonnes.
Thegovernment also hopes to engage traditional importers in the Middle East suchas Iraq and Iran, each of which currently imports about 1 million tonnes ofThai rice annually.
Previously,government rice sales played a significant role in supporting exports,accounting for about 20 percent of the annual total of between 8 million and 10million tonnes.
However,trade liberalisation in the past few years has made it easier to conductprivate deals, allowing the government to take a step back.
Althoughdemand has remained strong this year, Thai rice exporters say increasedcompetition is making it difficult to operate. A stronger baht has not helpedas competitors in Vietnam and India can now offer the crop at cheaper prices.
Limitedproduction is also expected to cut exports this year, preventing the countryfrom capitalizing on global demand. Farmers have been encouraged to grow otherprofitable crops such as cassava, corn and sugar cane.
TheThai Rice Exporters Association said it will closely monitor exports in thefirst quarter of this year and, if the baht continues to rise, may revise the2018 export target to below the previous forecast of 9.5 million tonnes. -VNA
VNA
