Exports of Thai rice could reach 7.5 million tons this year, up from 6.61 million tons exported last year, predicted the Thai Rice Exporters Association (TREA).
The Commerce Ministry earlier forecast a similar figure, saying the nation would be able to sell up to 8 million tons of rice this year; attributing the rise to the weakening baht, the competitive prices of Thai rice, and the government’s efforts in clearing the stockpiled rice.
Meanwhile, Charoen Laothammathat, President of the association, suggested the government consider abandoning the rice pledging scheme in order to improve the nation’s rice trading scene, saying that it would be better to allow the local rice market to develop through market mechanism. Without the presence of the rice mortgage program, the fierce global competition would determine the local rice prices.
According to the TREA president, during the past 2 years, the rice pledging scheme has forced the government to sell rice at relatively high prices; for example, the price of white rice, which was previously 600 dollars a ton has recently dropped to 400 dollars per ton.
Chareon said the cut-throat price trend would likely continue this year. In addition, Thailand’s large amount of stockpiled rice has sparked concerns among the nation’s trading partners over the quality of rice, given that it has been stored for a long period of time.
Source: http://thainews.prd.go.th/centerweb/newsen/NewsDetail?NT01_NewsID=WNECO5702060010003