Thailand's rice exports set to fall next year
Bangkok - Thailand's rice exports were expected to fall from an estimated 10 million tons this year to 8 million to 8.5 million in 2009 as India returns to the international market, media reports said Friday.
Thailand, the world's largest rice exporter for the past four decades, has benefited this year from India's and Vietnam's temporary bans on rice exports to assure a sufficient supply for their domestic markets.
The export bans, which created an artificial shortage on the world market, helped double the price of high-grade Thai rice to 1,000 dollars a ton in May and raise its exports.
India and Vietnam resumed rice exports in June and July, bringing world rice prices down.
Chookiat Ophaswongse, president of the Thai Rice Exporters Association, told the Bangkok Post that he expected Thai exports to fall to 8 million to 8.5 million tons in 2009 while also predicting prices for Thai rice would also come down.
"We won't likely see prices over 1,000 dollars a ton for a long time," Chookiat said.
He added that the Thai government's policy of buying rice from farmers at above-market prices and stockpiling it to sell on the export market would also bring prices down.
"The government currently holds a massive stockpile, and this will eventually pull down market prices," Chookiat said.
India and Vietnam are ranked among the world's top rice exporters after Thailand.
India shipped 6.3 million tons of rice in the 2006-07 season, compared with 2.5 million in 2007-08, according to the US Department of Agriculture. (dpa)