The world's top two rice exporters, Thailand and Vietnam, are aiming for record exports this year due to strong demand that will allow them to sell bumper crops at good prices, exporters said. Thailand, the biggest exporter, expected to ship more than 10 million tonnes in 2011, up from 9.0 million last year, on strong demand in the first half, according to the Thai Rice Exporters Association.
"We have done quite well in the first half of the year and, if there are no problems in the second half, we're quite confident we could sell more than 10 million tonnes this year," said Korbsook Iamsuri, president of the association.
In the first half, Thailand shipped 6.3 million tonnes of rice, up 57 percent from the 4.0 million tonnes in the same period last year, she told reporters.
Thai exports reached a record 10 million tonnes in 2004 when the government released stocks onto the export market at a time when world demand was strong. Annual exports have since dropped to between 8.0 million and 9.5 million tonnes, generally accounting for about a third of world trade, according to the association's data.
Vietnam, the second-biggest exporter, is also hoping for a record year, aiming to ship 7.3 million tonnes after a latest big order from Indonesia. "This year Thailand sold a lot of rice in the first half and that could help offset falls in the second half caused by uncompetitive high prices," said a Bangkok based trader
The price of Thai benchmark 100 percent B grade white rice rose to $555 per tonne from last week's $550, due mostly to tight supply as local traders were hoarding grain, expecting to sell it to the government later in the year at high prices. The 5 percent broken grade white rice was at $535 per tonne, up from last week's $530 per tonne. That was above the same grade in Vietnam, which was offered at $515-$530 per tonne, traders said.
NO LONGER TOP? Thailand may not retain its position as the world's biggest rice exporter next year because of the intervention policy of the incoming government, which is expected to push prices to uncompetitive levels and cause buyers to turn to Vietnam.
The Puea Thai Party, which won the July 3 general election and is expected to form a government next month, has promised to reinstate a rice-buying scheme to support farmers. "The new government said it will buy every single paddy grain at 15,000 baht ($505) a tonne and that will push Thai rice prices to $850 a tonne, a level that buyers will definitely say no to," said Vichai Sriprasert honorary president of the Thai Rice Exporters Association.
Because of that policy, Thai exports could drop as much as 50 percent to 5 million tonnes next year, exporters said. That could well leave Thailand trailing in second place behind Vietnam, which exported 6.83 million tonnes in 2010.