Thailand would be able to maintain its position as the world’s largest rice exporter this year, permanent secretary for commerce Yanyong Puangraj said on Tuesday.

Thailand exported 2.6 million tonnes of rice, worth 53.67 billion baht, from Jan 1 to May 17 and became the world's largest exporter. The US took the second rank, exporting two million tones of rice and Vietnam took the third place, with its 1.6 million tonnes of rice exported during the same period, said Mr Yanyong.

The average rice export price increased by 20 per cent to US$669 per tonne, from US$566, showing that the world market still wanted Thai rice even with its high price caused by price pledging scheme, he added.

The permanent secretary expected rice exports would be no less than nine million tonnes this year.

“Thailand will be able to maintain its world No 1 rice exporter status. In the past we focused on the export quantity in keeping the championship post. But now we would also emphasize on rice’s quality standards and is looking at more premium markets”, Mr Yanyong said.

He said his ministry expected world market price of Thai Hommali rice would increase by five per cent to US$1,200 a tonne and by 15 per cent to US$700 per tonne for white rice. These would make domestic price of paddy to stand at 15,000-20,000 baht per tonne.

Kobsuk Iamsuree, chairwoman of Thai Rice Exporters Association, disagreed with the ministry’s rice exports target set for 2012. She said her association maintained rice exports target for the year at only 6.5 million tonnes.

If the government is increase rice export volume to nine million tonnes as planned, it would have to get it done through a government to government rice selling agreement, said Ms Kobsuk.

The baht value was now weakened to 31 baht to US dollar, lowering price of Hommali rice to US$2,080 a tonne, from US$1,100. If the rice price to reach US$1,200 a tonne, the value of Thai currency must be strengthened to 25-26 baht a dollar, she said.

“Through the G-to-G negotiations, the state might get a better price, but it is certain that the price would not be that high if the deals are made between private firms”, said Ms Kobsuk.

Source: Bangkok Post