Thailand's rice exports to Japan look promising, with shipments expected to top 200,000 tonnes this year after Thailand has successfully solved problems related to aflatoxin-tainted rice. Chookiat Ophaswongse, the president of the Thai Rice Exporters Association, said Thailand had won the bids to export up to 90,000 tonnes of rice to Japan this month.

Of the total exports, 75,000 tonnes are 100% white rice priced at US$570 per tonne free-on-board, and the remaining 15,000 tonnes are glutinous rice priced at $430 per tonne.

Although Japan produces more rice than it consumes, it is obliged to import about 770,000 tonnes a year or 9% of its annual consumption under an international trade agreement.

Japan bought about 220,000 tonnes of Thai rice last year. However, it suspended rice tenders for two months late last year after discovering tainted rice in some shipments. The scandal forced its agriculture minister to resign and the ministry to tighten import regulations for both rice and wheat.

Mr Chookiat said Thailand had yet to receive any purchase orders from other governments, as Malaysia, Iran and other regular buyers had shifted to lower-priced Vietnamese grains.

Thai white rice prices now stand about US$580-590 per tonne, against $450 for Vietnamese rice. US rice, which used to cost about $100 per tonne more than Thai rice, now stands only at $525.

As a result, Thai rice exports in the first two months fell by 66% to only 294,000 tonnes compared with 880,000 tonnes in the same period last year.

''The outlook is worrisome in the second half particularly when India lifts its export ban on non-basmati rice,'' said Mr Chookiat.

Source: Bangkok Post