Thai rice exports are likely to stay below targets as the strong baht weakens competitiveness in the world market (Photo: Bangkok Post)Bangkok (VNA) – Thai riceexports are likely to stay below targets as the strong baht weakenscompetitiveness in the world market.
Honorary president of the Thai RiceExporters Association Chookiat Ophaswongse said Thai rice shipments may drop toas low as 8 million tonnes this year, led by a sharp decline in white riceexports.
He predicted that the continued strongbaht, which makes Thai rice more expensive than grains from other countries,will lower white rice shipments by up to 35 percent from 5.49 million tonneslast year, adding that Thailand’s rice exports totalled only 6 million tonnesat the end of September.
The free-on-board prices of Thai 5 percentwhite rice are 400 USD a tonne, while those of Vietnamese rice are at 320 USD atonne.
Prices for paddy rice in Vietnam are alsomuch lower, at 5,600 THB (183.67 USD) per tonne, while those of Thai rice areat 7,500-7,800 THB a tonne.
Chookiat said the Vietnamese currency hasbeen quite stable since last year, adding that because of the strong baht,buyers like the Philippines, Indonesia and Malaysia are projected to switch tobuying rice from Vietnam instead of Thailand.
Normally Thailand's rice exports average 10million tonnes a year, with white rice making up half the amount.
Chookiat said white rice shipments mayreach just 3 million tonnes this year.
In July, the association lowered its targetfor the country’s annual rice exports from 9.5 million tonnes to 9 million. Ofthe total, white rice will account for 3.9 million tonnes.
According to the latest report by theThailand’s Commerce Ministry, rice exports fell by 26.3 percent to 5.3 milliontonnes in the first eight months, while export value slid 22 percent to 2.87billion USD.
In a move to boost rice exports, the TradePolicy and Strategy Office of Thailand will ask the commerce minister to pay avisit to Asian buyers like the Philippines and China./.
Honorary president of the Thai RiceExporters Association Chookiat Ophaswongse said Thai rice shipments may drop toas low as 8 million tonnes this year, led by a sharp decline in white riceexports.
He predicted that the continued strongbaht, which makes Thai rice more expensive than grains from other countries,will lower white rice shipments by up to 35 percent from 5.49 million tonneslast year, adding that Thailand’s rice exports totalled only 6 million tonnesat the end of September.
The free-on-board prices of Thai 5 percentwhite rice are 400 USD a tonne, while those of Vietnamese rice are at 320 USD atonne.
Prices for paddy rice in Vietnam are alsomuch lower, at 5,600 THB (183.67 USD) per tonne, while those of Thai rice areat 7,500-7,800 THB a tonne.
Chookiat said the Vietnamese currency hasbeen quite stable since last year, adding that because of the strong baht,buyers like the Philippines, Indonesia and Malaysia are projected to switch tobuying rice from Vietnam instead of Thailand.
Normally Thailand's rice exports average 10million tonnes a year, with white rice making up half the amount.
Chookiat said white rice shipments mayreach just 3 million tonnes this year.
In July, the association lowered its targetfor the country’s annual rice exports from 9.5 million tonnes to 9 million. Ofthe total, white rice will account for 3.9 million tonnes.
According to the latest report by theThailand’s Commerce Ministry, rice exports fell by 26.3 percent to 5.3 milliontonnes in the first eight months, while export value slid 22 percent to 2.87billion USD.
In a move to boost rice exports, the TradePolicy and Strategy Office of Thailand will ask the commerce minister to pay avisit to Asian buyers like the Philippines and China./.
VNA
