According to the Kasikorn Research Centre, Thai rice exports slowed for the fifth consecutive month in February amid a sharp fall in global prices.

Kasikorn Research Center reported that rice exports in February 2009 were sluggish for a fifth consecutive month, since October last year.

The center said a high pledge price for in-season paddies hurt Thai rice exporters' competitiveness.

Among the factors leading to lower exports were foreign importers seeking cheaper rice from Vietnam. In addition, a historic jump in rice production in Burma and Cambodia, as well as rice cultivation by several countries for food security reasons, has dampened demand.

The research center said the rice price for the rest of the year would be determined by importers returning when their stocks have declined, or when they believe the global price has hit bottom.

However, factors likely to affect prices include the output of off-season rice, weather conditions, and a change in rice policies made by major farm producer countries.

The center said the global recession would continue to pressure prices, and unstable weather and concerns over food security would add to price volatility.

Source: TANN