World’s top rice producer?

Thailand, the world’s largest rice exporter, is likely to lose market share in ASEAN member countries to Viet Nam when the ASEAN Economic Community comes into being in 2015, a Thai researcher has warned.

Once the 10 ASEAN members scrap import tariffs on rice, Viet Nam will surely make inroads into the Philippines and Malaysia, two major buyers of Thai rice, English daily Bangkok Post quoted Dr Aat Pisanvanich, director of International Trade Studies at the University of the Thai Chamber of Commerce, as saying.

Viet Nam, the largest rice exporter to ASEAN countries since 2005 and the world’s second largest exporter, achieved exports of US$1.3 billion to the bloc in 2009 compared to $316 million by Thailand.

The quality of Thai and Vietnamese grains was not much different but Vietnamese traders charged around $125 less per tonne, he said.

So, Thailand would be better off aiming for the high-end market and creating awareness of the quality of its rice so that potential buyers could detect the difference.

According to another Thai newspaper, The Nation, the country’s Commerce Ministry expects rice sales through government-to-government channels to the Middle East, Africa and Asia to increase dramatically to 700,000-800,000 tonnes this year.

Manat Soiploy, director-general of the Foreign Trade Department, said China, the Philippines and Indonesia had greater need for rice imports since they were starting to face supply uncertainties due to natural disasters.

The Philippines was expected to import an additional 1.5 million tonnes in the current and third quarters while China was facing a drought in the south and might need to import more rice soon, he said.

Thailand would benefit from falling rice supply in many major producing countries, especially China, due to drought, while India had banned export of non-basmati rice.

The price of 5-per-cent broken white rice may increase to around $600 per tonne as a result.

Viet Nam began to offer 5 per cent broken rice at $500 from Saturday.

“Vietnamese rice production from its main crop is expected to be sold out soon, which will also drive up prices in the world market,” The Nation quoted him as saying.

Thailand hopes to export 9 million to 9.5 million tonnes of rice this year for $5.6 billion, up from 9.05 million tonnes worth $5.34 billion last year.

Last year Viet Nam exported 6.75 million tonnes for $3.23 billion, according to the Viet Nam Food Association.

Tags: Vietnam rice, Vietnam rice exports