Global rice glut set to hit Thai exports
Thai rice exports are projected to fall below 8 million tonnes next year, down from earlier estimates of 8.2 million tonnes. This decline is attributed to several risk factors: increased global rice stocks, limited R&D in rice varieties, rising production costs, and the potential lifting of India’s rice export restrictions. The Thai Rice Exporters Association emphasizes the need for Thailand to adapt its rice policies and invest in R&D to stay competitive. In contrast, Vietnam is enhancing its export strategy by focusing on high-quality rice varieties.
Thai rice exports are likely to be less than 8 million tonnes next year due to myriad risk factors hampering their competitiveness, which include a lack of research and development (R&D) for rice varieties, rising global supply, and the possibility of India lifting its rice export restrictions at year-end.
Charoen Laothamatas, president of the Thai Rice Exporters Association, said rice exports next year are expected to fall below the earlier estimate of 8.2 million tonnes.
Myriad risk factors still loom over Thai rice exports for next year, notably an increase in global rice stocks of 1.4%, reaching roughly 528 million tonnes due to an increase in rainfall for cultivation as a result of the La Niña weather phenomenon, lack of R&D for rice varieties which result in lower yield per rai compared to other major rice exporting countries which include Vietnam, India and China, higher production costs, and the possibility of India lifting its export restrictions on non-basmati white rice at the end of the year.
Thailand needs to change its rice policy by keeping abreast of changes in demand in the global market, particularly the preference for soft texture rice, and invest more in R&D to increase yield in order to compete in the global market.
Vietnam has adjusted its rice export policy by importing cheap rice from India for domestic consumption and shifting to developing high-quality rice for export such as fragrant rice and soft texture rice with a higher selling price and added value.
Source Link : https://www.bangkokpost.com/business/general/2839232/global-rice-glut-set-to-hit-thai-exports
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