Shipments poised to reach 7.5m tonnes

Thailand’s rice shipments are expected to fall by 14.4% this year because of lower production and greater competition, according to the Foreign Trade Department.

Ronnarong Phoolpipat, the department’s director-general, said the agency together with the Thai Rice Exporters Association estimated rice exports at 7.5 million tonnes this year.

The projection considered several factors, including an expected decrease in rice production of 5.87% year-on-year because of the El Niño weather phenomenon, and additional competition and challenges in the global rice market caused by increased production.

Import demand from trading partners is anticipated to decline as rice consumption trends down in China, Japan and Malaysia, possibly resulting in fierce price competition, he said.

Moreover, there are indications that Indonesia might purchase less rice than the previous year because of massive stocks carried over from 2023.

Meanwhile, China is increasing its rice production and transitioning from a major rice importer to a self-sufficient producer, potentially impacting Thailand’s future rice exports.

Mr Ronnarong said there are signals India may lift its suspension on white rice exports, allowing private entities to resume regular rice exports.

The department reported yesterday rice exports tallied 8.76 million tonnes in 2023, exceeding the target of 8 million tonnes, with the export value amounting to 178 billion baht (around $5.14 billion)

Export quantity and value increased by 13.6% and 28.4%, respectively, from the previous year.

From Jan 1-30, rice exports tallied 1.12 million tonnes, up 44% from the same period the previous year.

He said the department is ready to work closely with relevant government and private sector entities, including the Thai Rice Exporters Association, to promote and boost rice exports.

Key activities planned for this year include the Thailand Rice Convention (TRC) 2024 in May, a major international conference where experts from the global rice trade will convene to exchange information on the global market situation and engage in business negotiations,

Mobile TRC roadshows are expected to provide on-site information on global market trends to rice farmers, encouraging them to produce rice that aligns more closely with market demands, said Mr Ronnarong.

The department also has plans to strengthen relationships and expand the rice market in key markets, such as South Africa, Hong Kong, Japan, Singapore, Malaysia and the Philippines, which he said are crucial markets for Thailand.

The agency wants to speed up negotiations with Indonesia and China as well as other countries to sell Thai rice under government-to-government deals, as well as participate in several trade shows and organise the Thai Rice Roadshow to promote Thai rice in the Chinese market, said Mr Ronnarong.

Published Date: February 2, 2024