Thailand would be able to maintain its position as the world’s largest rice exporter this year, permanent secretary for commerce Yanyong Puangraj said on Tuesday.
Thailand exported 2.6 million tonnes of rice, worth 53.67 billion baht, from Jan 1 to May 17 and became the world's largest exporter.
The US took second place, exporting two million tones of rice and Vietnam third place with its 1.6 million tonnes of rice exported during the same period, said Mr Yanyong.
Photo by Prasit Tangprasert
The average rice export price increased by 20 per cent to US$669 per tonne, from US$566, showing that the world market still wanted Thai rice even with its price raised by the price pledging scheme, he added.
The permanent secretary expected rice exports would total at least nine million tonnes this year.
“Thailand will be able to maintain its world number one rice exporter status. In the past we focused on export quantity in keeping the championship post. But now we will also emphasise our rice’s quality standard and are looking at more premium markets,” Mr Yanyong said.
He said his ministry expected the world market price of Thai Hommali rice would increase by five per cent to US$1,200 a tonne and by 15 per cent to US$700 per tonne for white rice. This would allow the domestic price of paddy to stand at 15,000-20,000 baht per tonne.
Kobsuk Iamsuree, chairwoman of the Thai Rice Exporters Association, disagreed with the ministry’s rice exports projection for 2012. She said her association still predicted rice exports for the year at only 6.5 million tonnes.
If the government is to increase rice exports to nine million tonnes, as planned, it would have to get it done through a government-to-government selling agreement, said Ms Kobsuk.
The baht had now weakened to 31 baht to the US dollar, lowering the price of Hommali rice to US$1,080 a tonne, from US$1,100. If the rice price is to reach US$1,200 a tonne, the value of the Thai currency must be strengthened to 25-26 baht to the dollar, she said.
“Through goverenment-to-government negotiations, the state might get a better price, but it is certain that the price would not be that high if the deals are made between private firms,” said Ms Kobsuk.