The Thai Rice Exporters Association has disclosed that this year’s drought would likely diminish about 30% of the projected 5-6 million tons of off-season rice output in the Central Region during the 1st round of off-season farming. The issues may affect the nation’s plan to remain as the number-one rice exporter in the ASEAN Region and the world.
According to Honorary President of the Association, Shukiate Opaswong, if the drought intensifies in April, the output on the 2nd round would be even less, dropping to about 40-50% of the targeted 3-4 million tons. This year’s production of off-season rice is likely to be reduced by 1-2 million tons altogether.
The predicament would likely increase the demand for rice, leading to higher domestic rice prices. It also means that export would take a hit because of the higher price tag, making it difficult to achieve the targeted 10 million tons of rice exports this year.
If Thailand manages to export 10 tons of rice this year, it will maintain its number-one rice exporting nation status in the ASEAN region and the world for another year. Mr. Shukiate said that the private sector is working with the Ministry of Commerce in formulating strategies to maintain the country’s market share. However, the setback remains to be the drought and fierce competition from other rice exporters.
Source: World Grain
FEB
2015
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