Thai rice exports likely to drop this year

BANGKOK, August 28 (TNA) - Bangkok-based Kasetsart University's agricultural economics foresight centre has predicted that Thai rice exports will drop this year in line with global rice prices. The director's centre, Jaruek Singhapreecha, as well as Associated Professor Wuthichai Kapilkan, Kasetsart University Rector and Apichart Jongsakul, Secretary-General of the Office of Agricultural Economics, said on Tuesday that Thai rice exports now tend to drop when being compared with those of last year. The academics projected that Thailand's rice export volume should stand at about 6.5 million tons this year, saying that the slowdown should result from India which has as many as 30 million tons of rice stocks currently, as well as declining demand for rice worldwide and a reduction of rice prices by Vietnam. The academics acknowledged that the prices of Thai rice have risen by about 20 per cent, to 671 US dollars per ton on average, but pointing out that positive factors have remained for Thailand's rice trade, including the possibly weaker Thai baht, China’s rising demand for rice and drought in India and Vietnam. According to the academics, Thailand's exports of quality rice, especially Hom Mali fragrant rice, to premium markets like Japan have remains generally stable. Meanwhile, the Federation of Thai Industries ( FTI) admitted a slowdown in overall Thai exports, even in the second half of this year, urging local business operators to, thus, seek ways to cope with the situation, namely exploring new markets, noting that the local private sector plans to submit a 30-point proposal to the government to help boost Thai exports next year.(TNA)