Thailand is expected to export only 7.5 million tonnes of rice this year, below the target of 8.5 million, says Tikhumporn Natvaratat, deputy director-general of the Foreign Trade Department.

Regardless of what the final figure is, it will be down sharply from the 10.6 million tonnes Thailand exported last year.

Exporters have blamed the sharp fall in volume on the government's pledging programme, which pays farmers 40% more than market rates for their paddy. As a result, Thai rice in the world market cannot compete with cheaper grain from Vietnam and India.

While Thailand is in danger of losing its decades-old title as the world's leading rice exporter by volume, it should still emerge on top in terms of value, said Mr Tikhumporn.

Since the beginning of the year, he said, the country had exported a total of 5.5 million tonnes of rice, worth US$3.6 billion, up 18% in value from the same period last year.

He believes the country's rice export value this year will not be lower than $4 billion, keeping Thailand on top.

Vietnam has exported an estimated 5.9 million tonnes of rice and India 5.6 million so far this year.

Mr Tikhumporn insisted the government would not cut rice prices to stay competitive on the world market, but would focus on looking for export markets that want high-quality rice instead.

He said the government would gradually ship rice to six countries that had bought Thai rice through government-to-government deals between now and the end of next year as scheduled.

Source: Bangkok post