The Thai Rice Exporters Association is in talks with the government of the Philippines about the possibility of increasing the export of Thai rice to the Philippines.

President of the Thai Rice Exporters Association Chookiat Ophaswongse, said the association is currently talking with the government of the Philippines about an agreement to export 500,000 tons of Thai rice.

At present, the government of the Philipines has agreed to buy 200,000 tons of Thai rice.

The talks took place after the government of the Philippines stated they aim to import 10 million tons of rice during the next year, following a severe flood. A new prediction states that the scarcity of rice will be more severe than earlier expected, possibly by as much as 1.14 million tons.

Chookiat revealed that the prospect of rice export during the next year looks promising for Thailand, as India cannot export rice due to increased domestic consumption.

This increase in rice exports is in line with economic recovery.

However, the price of Thai rice is expected to decrease to 500-520 US dollars per ton as a new lot of rice enters the market.

Meanwhile, an economist from the Food and Agriculture Organization of the United Nations stated that India's rice production will decrease by 18 per cent this year due to drought.

The decrease may affect global demand for rice as India is the second biggest rice grower in the world, and added that if the drought continues, the rice cultivation will be affected and the drought will also impact India's rice export next year.

Source: TANN