The Commerce Ministry is confident that this year's rice export will exceed the target of 9.5 million tons. The ministry also vows to continue its push for worldwide adoption of the Thai rice standard.

Permanent Secretary for Commerce Yanyong Puangraj said the price of rice on the domestic market has increased to between 8,200 and 8,300 baht per ton, with a possibility to reach 9,000 baht this year.

He added that Thailand exported more than 3 million tons of rice in the first quarter of the year. Yanyong expects rice export will exceed the annual target of 9.5 million tons.

The permanent secretary spoke following a seminar and the launch of '5 %White Rice, Free-on-Board' future contracts by the Agricultural Futures Exchange of Thailand.

Regarding efforts to maintain Thailand's position as the world's top rice exporter, he suggested that the government utilize the ASEAN Economic Community to strengthen leadership in the global rice market, since 60 percent of the global rice supply is produced by ASEAN member states.

Yanyong went on to say that Thailand must become a standardizer in terms of rice and ensure that the standard is adopted worldwide.

He added that manufacturers and exporters need to add value to rice products to make them stand out from competitors'.

Meanwhile, Pramote Wanichanont, chairman of the Thai Rice Mills Association, said rice export is still on a favorable trend, with more than a million tons being exported between December and February.

However, he observed that the current upward trend in price may hinder Thailand's competitiveness.

Pramote noted that Vietnam has exceeded Thailand in the export of five-percent white rice, as the neighboring country is able to sell that particular kind of rice at a price 50 dollars per ton lower.

In addition, he said both Vietnam and China are developing their own jasmine rice to earn a bigger share in the high-end market, and that the government must be careful about determining the price of rice.

Source: TANN