Thailand 2011 rice exports to reach 8.5-9.5 million tons

November 25, 2010
BANGKOK (Commodity Online) : World’s largest rice exporter Thailand said its exports to reach 8.5-9.5 million tons next year.

Speaking at the seminar titled "Thailand's Rice Policy for 2011" here, country’s commerce minister Porntiva Nakasai said despite the floods, rice exports will not decline.

She said export quality, not quantity, will be the focus the next five years, particularly for premium-grade rice. Thailand’s target for this year is 8.5 million tons worth 200 billion baht.

With the focus on quality, the value of rice exports could increase to 500 billion baht or more.

She also said Thailand will co-operate closely with neighbors such as Vietnam, Laos and Cambodia to curb price-cutting by them, while the country will help with marketing.

Global rice prices are expected to be volatile next year but generally on an uptrend, as natural disasters have dampened output worldwide while demand remains high.

However, Thailand’s Agriculture ministry said output from this year's main harvest may fall below previous estimates, as the worst floods in five decades have devastated crops.

It could be the worst damage to rice crops since the 2006 floods, it said.

Output of rough rice from the main crop, which began being harvested last month and accounts for 70% of total production, may fall by 7% from last year.

Production from the main crop is estimated to decline by 1.6 million tonnes to 21.7 million, it said.

The flooding, which affected two-thirds of the country, may slash the country's economic growth by 0.3 percentage point this year to 7.9%, state planning agency the National Economic and Social Development Board said this week.

Some 11 million rai of agricultural land or 8.5% of the total have been inundated, Floods deluged 8.3 million rai of riceland or 15% of the area for main-crop production, Agri ministry in a report said.

Four million rai of rice crops are believed to be entirely devastated, he said. Actual damage numbers will be finalised about mid-December, the ministry added.

Second-crop production, which begins next April, may rise to 9.3 million tonnes from 8.26 million last year, when drought caused by the El Nino weather phenomenon and the spread of brown planthoppers hurt yields, it said

Thai Rice Millers Association, said the combined milling capacity of all Thai millers is 100 million tonnes of paddy rice, while total output is 30-33 million tonnes.

With the excess milling capacity, Thailand could make use of its Asean Free Trade Area privilege with Vietnam, which has up to 45 million rai of ricefields and expects to export seven million tonnes this year, part of which is imported paddy from Cambodia for milling and export.

This positions Vietnam as a rice trader while Thailand cannot import paddy from its neighbours to mill. Association urged the government seriously to consider importing paddy for processing and export.

Meanwhile Knowledge Network Institute of Thailand, said rice prices will remain on an uptrend next year, particularly jasmine rice, which will suffer reduced output output from the flooding.

From January to October, Thailand exported 7 million tonnes of rice, down by 2.27% from the same period last year, but still expects to reach 8.7-9 million tonnes by year-end.