High demand from India, RP, Indonesia to benefit Thai firms. Rice export prices are expected to rise 5-10 per cent next year, thanks to demand from the Philippines, Indonesia and India, which could order several million tonnes.
"We foresee that India will turn from being an exporter to an importer due to the drop in first-crop production, that the Philippines has to import a bigger volume as natural disasters have damaged its production, and we are waiting to see how much Indonesia will import as it will create big impact on the market," said Sombat Chalermwutinan, president of Asia Golden Rice, the country's biggest rice exporter. The Philippines is expected to import 2.5 million tonnes, against 1.7 million tonnes this year.
Facing drought, India is wait-|ing for its second-crop cultivation |in March and April before announcing its import plan, but earlier this week, it said the country is interested to import from Thailand could top 2 million. Exporters expect the country to import a total of 5 million tonnes throughout next year. India earlier lowered import tariffs from 60-70 per cent to 20 per cent.
Sombat said the Philippines is expected to open two more rounds of bid, for 600,000 tonnes each.
"Thai exporters hope to win some of these contracts, though the prices may be higher than Vietnam," said Sombat, adding that Vietnam price is low on lower production costs and subsidies from its Vina Food state agency.
He also urged the government to support Thai exporters in this race, probably by releasing its stockpiles.
Given tough export competition, Asia Golden Rice will next year |focus more on domestic trade as well as expanding into rice-related food business. The company will also concentrate more on brand-building overseas to achieve value creation.
Its rice is marketed under three brands domestically: Benjarong for jasmine rice, and Suphannahong and Mitrapap for white rice.
Benjarong is very well known in China as a result of the firm's brand-building strategy with its Chinese trading partner, which has spent an average of Bt100 million annually over four consecutive years on promoting it.
Four new brands will be promoted next year in different parts of the world: My Deer for Africa, Phatra Rice for the European Union, Monarch for the Middle East and Siam Pure Rice for Asia.
Sombat said the company would start producing rice-bran oil and spices next year. The products will be sold both at home and overseas.
"We think rice-bran oil can be an extension of our rice export business," he said.
Asia Golden Rice's exports this year are expected to be 1.4 million tonnes, accounting for 16 per cent of the country's total rice exports, which are forecast to reach 8.5 million-8.7 million tonnes. The company exports to 50 countries.
Source: The Nation
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