Thailand is set to export 500,000 tonnes of rice this month, bringing the fullyear total to 6.9 million tonnes, down 35.3% from last year’s 10.66 million tonnes.

The Thai Rice Exporters Association (TREA) attributes the loss to the falling competitiveness of Thai rice, especially white and parboiled rice facing strong competition from Vietnam and India.

The latest statistics show Thailand exported 6.4 million tonnes in the first 11 months of this year with a value of 135 billion baht compared with 10.1 million tonnes worth 179 billion baht in the same period of last year.

That represented drops of 36.6% and 25% in volume and value, respectively. Average export prices increased by 16% to US$684 a tonne.

Nigeria (1.25 million tonnes), Iraq (732,241 tonnes) and South Africa (357,351 tonnes) remain the top buyers of Thai rice.

Ivory Coast (355,330 tonnes) and Indonesia (330,069 tonnes) have also become major importers of Thai rice. Exports of white rice fell by 45% to 2.32 million tonnes, down from 4.21 million tonnes last year.

Parboiled rice shipments dropped by 38% to 2.07 million tonnes, while those of premium Hom Mali rice dropped by 17.8% to 1.75 million tonnes.

TREApresident Korbsook Iamsuri estimates exports at only 500,000 tonnes this month, attributing the weak market to the normal slowdown late in the year and strong competition from India, Vietnam and Pakistan.

Thai rice is $155-175 more expensive per tonne than that of its competitors —for example, 5% grade rice is quoted at $585 compared with $425-435 offered by India and $415-425 by Pakistan. Vietnam has also cut prices to as low as $405-410 a tonne to clear stock for new output.

Source: Bangkok Post