As the world's largest rice supplier, Thailand is expected to export more than 8.75 million tonnes this year, followed by Vietnam, India, the United States and Pakistan.
So far, India has imposed a minimum export rice price of not lower than US$1000 (31,600 Baht) per tonne. Vietnam has issued an export ban due to a climate change problem. Egypt is the latest rice exporting country to suspend rice exports until October this year.
Unlike other rice exporting countries, Thailand will not face a rice shortage problem, thanks to a plentiful rice supply from three to four crops, compared to only one or two of others, said the Commerce Ministry of Thailand Secretary.
As the world's largest rice supplier, Thailand is expected to export more than 8.75 million tonnes this year, followed by Vietnam, India, the United States and Pakistan.
Though Thai consumers fear a rice supply shortage in the country caused by increasing demand in the global market, the Commerce Ministry of Thailand does not plan to raise control restrictions against exports but instead foresees that the high price environment will benefit all parties concerned.
Commerce secretary said that although consumers may shoulder higher rice prices, the price increase will benefit farmers and the overall economy. On average, consumers spend 5 baht for rice a day. Rising rice prices now should only slightly force up spending for rice to 6-7 baht a day, Secretary said.
Rice prices are predicted to climb above US$1,000 (31,594 Baht) per tonne. This presents Thailand with a new challenge. As a result, the government will closely monitor both supplies and exports to shield local consumers.
Commerce secretary suggested that rice exporters should take the opportunity to learn how to bargain for the best price. As the world's biggest rice exporting country, Thailand should create a "Rice Pool" as a cooperative measure for marketing and export. This would increase bargaining power. Currently, the market belongs to rice traders.
However, the overall economy will grow as farmers are the majority population of Thailand. Moreover, as the government has a stockpile of up to 2.1 million tonnes, the domestic market should not be affected by skyrocketing rice prices.
Asked about a pricing trend, Secretary is optimistic that rice prices should remain high and never turn low as in the past. "Inevitably, consumers may face higher rice prices because of high demand for the world's consumption. However, we should enjoy long-lasting benefits from higher rice prices as the major rice supplier," said Secretary. The world will continue to demand higher quantities of rice for consumption while rice plantation areas may be shifted to plant fuel crops. To insure sustainable development for Thailand’s rice plantations and to remain as the world's largest rice supplier, the government will continue to set strategies to increase rice yield and transfer this knowledge to farmers.
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