Thai Hom Mali rice in Hong Kong is at risk of losing its market share, as China and Vietnam are aggressively shipping low-quality grain to Hong Kong, warns Commerce Minister Porntiva Nakasai.

To address that threat, the minister yesterday held talks with Hong Kong Trade Minister Rita Lue in Hong Kong in the latest attempt to expand trade and investment.

Hong Kong is estimated to import 313,000 tonnes of Hom Mali rice worth about US$200 million a year. Thai Hom Mali rice controls 82% of the Hong Kong rice market.

In 2009, Hong Kong imported 257,899 tonnes of Thai Hom Mali rice, followed by 40,045 tonnes from China and 15,954 tonnes from Vietnam.

Thailand exported about 2 million tonnes of Thai Hom Mali rice including broken grains last year, said Chookiat Ophaswongse, the honorary president of the Thai Rice Exporters Association. This year's shipments are estimated at the same level as 2009, he said.

Mrs Porntiva said that apart from intensified competition from cheaper grains, Thai Hom Mali rice was becoming adulterated with lower quality rice.

The minister wants the Foreign Trade Department and the private sector to study and develop rice standards and organise roadshows in Hong Kong.

She added Thai authorities have also discussed the possibility of promoting the grain through movies.

Thai rice prices, the benchmark for Asia, rose yesterday for the second straight week as the baht strengthened, said the exporters' association.

The price of 100% grade-B white rice gained 0.2% to $543 a tonne, and 25% broken rice was set at $452 a tonne compared with $451 last week.

Source: Bangkok Post