Thai farmers should concentrate on white rice and continue growing unique varieties of fragrant rice only for the premium market to cope with tougher competition from the emergence of India and Indonesia as key suppliers, says a rice expert.

To strengthen Thailand's competitiveness in the short run, the country should focus on doubling yield from 460 kilograms per rai (2,875kg per hectare) to 800-900kg per rai. The next step would be to use high-quality seeds that can triple yield to a minimum of 1,000kg per rai from 460kg, said Anek Silapapun, executive vice president of crop-integration business for CP Group.

"High-quality rice seeds are not a barrier, as Thailand has moved forward on rice-seed research and development with varieties of white-rice strains," Anek said.

Despite the prestige of the Kingdom's Hom Mali variety of jasmine rice, it is difficult to increase its yield because of limitations in terms of planting area and the fact that it grows in dry areas of the Northeast. The government should encourage farmers in that area to concentrate more on applying for Geographical Indication certification to access more premium customers.

However, white rice grows nationwide but mainly in the Central region, particularly where irrigation systems can support yields averaging 600-700kg per rai. With high-quality rice seed and a reliable source of water, farmers can reach yield of 1,000-1,100kg per rai in the Central region.

"If we can achieve such high yields, Thailand can significantly reduce rice plantation areas from the current 68 million rai," freeing that land up for other uses, Anek said. Farmers would also benefit from competitive production costs. He said the CP 304 hybrid yielded a maximum of 1,400-1,500kg per rai when grown in the Central region under an irrigation system.

Thai farmers are facing tougher export competition not only from neighbouring countries such as Vietnam, Laos, Cambodia and Burma but also from India and Indonesia, which have fertile soil and good climatic conditions. Both India and Indonesia have great potential as the world's new rice sources.

According to US Department of Agriculture statistics, the world's rice production will grow by 1.36 per cent to 456.32 million tonnes. Of the total, India's production will increase by 2.65 per cent to 97 million tonnes, Indonesia by 1.9 per cent to 37.6 million tonnes, Burma by 2.33 per cent to 11 million tonnes, Laos by 11.1 per cent to 2 million tonnes. However, Vietnam, the world's second-largest rice exporter after Thailand, expects production to drop by 1.45 per cent to 25.43 million tonnes while Cambodia, an emerging rice exporter, faces zero growth and United States will drop by 20.56 per cent. World rice production is forecast to increase by an average of 1-2 per cent per year.

Surrounded by rice-consumer countries, India has a great opportunity to transport its rice to Bangladesh and elsewhere in South Asia. People in these countries consume harder qualities such as parboiled rice, and India offers an attractive price of US$430 (Bt12,800) per tonne, compared with Thailand's $550.

Anek stressed that the government should invest heavily in irrigation systems and infrastructure development. Even if it costs Bt100 billion, the government needs to undertake this challenge. Moreover, the government should make sure that its investment goes into productive regions.

To achieve sustainable competitiveness and development, the government should join with the private sector in conducting research and development for hybrid seeds. Moreover, related facilities such as marketing, crop insurance and technology supports should be provided. These support measures should be aimed in particular at small farmers nationwide.

Currently, small and medium-sized farmers with plantation areas of less than 20 rai make up 62 per cent of all farmers unclear - might mean 62% of plantation area but generate only 28 per cent of the country's total production, while most production is by big-scale farms.

Anek added that Thailand should reduce waste in the rice fields, which mainly takes the form of overuse of fertiliser.

Anek stressed that Thailand should not worry about expansion of rice-cultivation areas in Africa, as most of that continent is concerned with self-sufficiency, not export. Many parts of Africa face drought for much of the year, while rice needs sustained water supply. In addition, high production costs will obstruct rice plantation as producers need to develop many facilities such as logistic systems, infrastructure, rice mills, and manpower.

"Seventy per cent of the population in that region have incomes lower than $1 [per day] and they may not be able to afford the rice," he said.

Africa's annual rice production averages 13.2 million tonnes against demand of 19 million tonnes, the shortfall offset by imports. Of the total import volume of 5 million to 6 million tonnes per year, Thailand controls the lion's share of 4 million tonnes. Demand in Africa is increasing by an average of 6 per cent per year.

Thai rice has been classified into three main types: white rice, glutinous rice and Hom Mali rice (fragrant jasmine rice). However, the limitations on Hom Mali production in terms of plantation area and low yield has affected the country's overall rice production.

Source: The Nation