Rice traders have been urged to focus more on innovation and the development of processed products to offset slower exports of grain during an era of intense competition.

Napawan Songprasertkul, vice president of the Asean Trade Promotion Association, yesterday said the development of rice into processed rice and other products would be a way for the industry to survive amid a continued drop in exports.

Tougher competition in the world market has led to a gradual decline in Thai rice exports. Exporting nations such as Vietnam, India and other countries in the region have increased their export volume, selling at lower prices than Thai exports.

Exports of Thai rice grain dropped by 50 per cent in the first two months of the year, because of higher prices under the government's pledging project. Other countries' grain is US$100 per |tonne lower than the Thai equivalent. However, exports of rice products such as cosmetics, healthcare goods and processed food have consistently increased in the past few years.

"Traders will enjoy more added value from the development of rice into processed food and other products. The margin will be at least 30-40 per cent higher if traders invest more on innovation and product development," she said.

Napawan said Thailand might no longer be able to enjoy exporting merely rice grain, and it should focus more on product development. All concerned should realise the Kingdom's strength as a centre of rice production and trading.

According to the association, the value of rice-product trading is currently Bt3 billion a year. This is estimated to grow by 10-15 per cent a year. Rice products that have increased recognition among consumers are rice-bran cooking oil, moisturisers made from rice, serum, rice soap and cosmetics.

Major importers of Thai rice products are Japan, Asean member states, the United States and the European Union, she added.

To promote rice-product exports, innovation will be highlighted at the Health Expo 2012 - Health Food and Ingredient Thailand and Bio Beauty and Bio Fit fair, to be held from March 29 to April 1 at Hall 9, Impact Muang Thong Thani.

Immediate sales of Bt500 million are targeted during the event.

Source: The Nation