Thailand has regained its position as the top rice exporter with shipments totalling nearly 4 million tonnes in the first five months of this year.

Somkiat Makcayathorn, secretary-general of the Thai Rice Exporters Association, said on Wednesday that from Jan 1 to May 20, 2014, Thailand exported a total of 3.93 million tonnes, surpassing India (3.74 million tonnes) and Vietnam (2.4 million tonnes) in the same period.

He said Thai rice exports were boosted as price intervention ended, meaning Thai rice was cheaper than that of its competitors, especially ordinary white rice.

The Thai Rice Exporters Association predicted that rice exports would reach 9 million tonnes this year, with a value of US$4.75 billion, or about 150 billion baht.

Mr Somkiat said export volume should surpass that of India and Vietnam and Thailand should regain its rice export title this year, after dropping behind in the past two years.

The fall happened when the Yingluck Shinawatra government increased the price of Thai rice through its loss-ridden rice-pledging scheme, which promised over-market prices to farmers. Many were never paid.

Mr Somkiat said Thailand would benefit this year because Thai rice was cheaper, there was no rice price intervention and the baht had depreciated. He expected Thailand would export 11 million tonnes of rice next year, ahead of the 10 million tonnes expected from India and 6-7 million tonnes from Vietnam.

The Thai Rice Exporters Association reported that in global markets Thai rice was priced around US$390 per tonne, with Indian rice at US$420-430 and Vietnamese grain around US$400 per tonne.

Chookiat Ophaswongse, honorary president of the association, said there were bright prospects for the second half of this year because Thai rice was cheaper, the market in China was hungry and global natural disasters were likely to improve demand.

Rice exporters president Charoen Laothamatas said the new administration needed to audit rice stocks, improve rice management plans, ensure transparent rice auctions that suit the market, and look to government-to-government rice sales with China.

He said auditing rice stocks would reveal the exact quantity and quality of grain still in the stockpile, and that should raise rice prices.

In the long term, a new rice board should be formed to ensure policies that are really suitable to markets. The board should consist of representatives of farmers, rice millers, local rice traders and rice exporters.

He also suggested the government guarantee free and fair competition in the rice sector and help farmers increase yields and cut costs.

Source: Bangkok Post