Rice exports have improved this month after Nigerian importers stepped up their parboiled rice imports from Thailand after India failed to honour their delivery.

"Nigeria's recent announcement that it will increase its rice import tariff mid-year has prompted local importers to speed up their rice imports, making India, the main parboiled rice exporter to Nigeria, unable to deliver in time," said Korbsook Iamsuri, president of the Thai Rice Exporters Association.

She said March rice exports are now estimated at 500,000 tonnes, which will boost first-quarter shipments to 1.5 million tonnes.

Thailand shipped a total of 1 million tonnes worth 22.5 billion baht in January and February. That represented year-on-year declines of 47.4% in volume and 31.9% in value.

The average export price during the two months was US$687 per tonne, up by 18.5% year-on-year.

But despite the improving trend, first-quarter rice export figures will still remain far below the level achieved in the same period last year, when Thailand shipped 3.06 million tonnes.

Last March alone, rice shipments totalled 1.14 million tonnes.

Ms Korbsook said new purchase orders also remain marginal, as most buyers are opting for cheaper rice from Pakistan, India and Vietnam.

For instance, 5% white rice from India goes for $435-445 a tonne on a free-on-board basis, from Pakistan for $460-470 a tonne FOB and from Vietnam for $430-440 a tonne FOB.

On the other hand, Thai 100% grade-B white rice is now quoted at $565 a tonne.

In a related development, Chanchai Rakthananon, president of the Thai Rice Millers Association, said millers want the government to revise criteria for delivering milled grain to the government under the pledging scheme.

They want to deliver only full-grain rice and keep the broken rice from the milling process.

The government now requires the delivery of all milled rice, causing the price of broken rice to jump and creating problems for end-users such as noodle factories.

"If the government allows millers participating in the scheme to keep the broken rice, then paddy prices should rise. The millers will have more liquidity with which to buy paddy, while the government can reduce damage from storing broken grains," said Mr Chanchai.

The government so far has 8 million tonnes of paddy under the pledging scheme.

Source: Bangkok Post