Thai rice exports fall sharply in first five months of 2009

BANGKOK, July 8 (TNA) — Rice exports by Thailand, the world’s number one rice exporter, is facing fierce competition from Vietnam as exports in the first five months of 2009 have slumped sharply, according to a report issued by Kasikorn Research Centre.
 
The report said Vietnam–which offers export rice at prices lower than Thailand by US$100-200 per tonne–had directly impacted the kingdom’s rice exports to tumble to 3.47 million tonnes valued at US$1.93 billion between January and May, down 30.7 per cent in volume and 21.4 per cent in value compared to the same period of last year.
 
Thailand’s rice exports now face competition considered to be the toughest in the past five years, Kasikorn said.
 
The centre predicts that competition in the second half of 2009 will become more fiercer than the first half as India re-enters the rice export market, while Thai rice prices are still more expensive than its competitors.
 
Thailand’s total 2009 rice exports will drop to 8.5 million tonnes and the country will earn US$4.65 billion, down 16.8 per cent and 25 per cent in volume and value respectively from 2008. (TNA)