Officials expect Thailand to reclaim its position as the world's largest rice exporter next year through a combination of aggressive promotion of overseas sales and the effect of drought in key producer markets affecting global output.

The Foreign Trade Department yesterday predicted exports of 8.5 million tonnes of Thai rice in 2013, with an expected value of US$5.7 billion (Bt175 billion). This should ensure that the Kingdom becomes the world's biggest exporter again after, as seems inevitable, losing its title this year.

The country is projected to export about 7.3 million tonnes of rice this year, with a value of $4.94 billion. Next year, export volume should increase by 16.44 per cent, while value will rise by 15.2 per cent, according to the agency.

Director-general Pranee Siriphand said Thailand should achieve more export volume and value next year due to a stable supply of rice and plans to promote sales to many markets.

"Not only should rice export volume increase next year but also value, as Thailand is the only country with the sufficient standard and capacity to export many kinds of rice," she said.

Moreover, government-to-government rice deals, which have been signed with five countries for the sale of 7.32 million tonnes of rice this year and next, will increase export volume.

The Commerce Ministry plans to ship 1.8 million tonnes of rice under the G2G contracts this year, while the remaining amount will be delivered next year. This will support a higher export volume during 2013.

Of the other two leading rice-exporting nations, Vietnam is expected to export 7 million tonnes and India 7 million to 8 million tonnes next year.

PROMOTION STRATEGY

To promote increased exports next year, Pranee said the department would focus its strategy on demand for each particular market, as well as seeking new markets.

For instance, the agency will concentrate on promoting jasmine rice to Hong Kong and Singapore, which both have strong demand for the fragrant rice and high purchasing power.

In cooperation with rice traders, the department will also arrange missions to promote sales to each major market, that is, the United States, the European Union, China, Africa and the Middle East.

Pranee said the government would also continue to sell rice under G2G contracts, focusing on Asean countries, mainly Indonesia and the Philippines, where there is high demand, as well as on Africa.

Moreover, the department will concentrate its export promotion plan on Geographical Indication rice, as this kind of rice is high-value-added and helps promote local producers. GI rice has high nutritional value and is favoured by many markets, such as the US, the EU, Australia and some Asian countries.

It will also promote rice sales through leading foreign media channels such as CNN, CNBC and China Central Television, as well via radio, newspapers and magazines.

To strengthen rice exports around the world, Thailand will also cooperate with other regional countries to set up a mechanism and tools to promote Asean exports and drive up global prices.

Tikhumporn Natvaratat, deputy director-general of the Foreign Trade Department, said rice prices are expected to rise next year because of drought in many countries, which would lead to lower output of cereals.

He predicted that the average price of white rice should increase from $679 a tonne this year to above $700 next year

Source: The Nation