The Thai Rice Export Association president says the high rice price being offered by Thailand following the implementation of the rice pledging scheme have forced trade partners to switch to buying rice from other countries, resulting in a drop in Thai rice export.

Honorary President of Thai Rice Export Association Chukiat Opaswong disclosed that Thailand’s rice export fell to 430,000 tons in December.

The export volume shrank by 56 percent from the same period last year.

Chukiat attributed the decrease to the government's rice pledging scheme that pushed the price of Thai rice extremely higher than its competitors.

He noted that Thailand is also facing growing competition from India, which has returned to the market, as it can produce rice at a very low cost.

India's rice is about 150 US dollars per ton.

Many countries have turned to purchase parboiled rice from India instead of Thailand.

The Rice Export Association president stated that the price of Thai jasmine rice is 1,100 US dollars per ton, but jasmine rice from Vietnam, which will enter the market in March, will sell at 650 dollars.

With the high rice price being offered by Thailand, trade partners may switch to buying rice from Vietnam.

Chukiat downplayed the impact of the recent floods on Thai rice export, saying it is due to the implementation of the rice pledging scheme that has made it harder for Thai rice to compete with rice from other countries

Source: TANN