Thai rice exporters cut 2020 forecast to lowest volume in 20 years

 

FILE PHOTO: A rice mill worker holds rice that fallen onto the ground in Udon Thani, Thailand, September 16, 2015. REUTERS/Jorge Silva/Files

 

BANGKOK (Reuters) - Thailand's rice exporters association has cut its forecast for 2020 exports to 6.5 million tonnes, the lowest volume in 20 years, its honorary president said on Wednesday.

 

The Thai Rice Exporters Association earlier this year forecast the world's second-largest rice exporter would sell 7.5 million tonnes, already the lowest in seven years.

 

"We've revised this year's forecast based on the volume shipped in the first six months of the year," Chookiat Ophaswongse, honorary president of the exporters association, told Reuters.

 

"The new forecast of 6.5 million tonnes is the lowest volume in 20 years."

 

From January to June, Thailand exported 3.14 million tonnes of rice, about a third lower than the same period last year, according to data from the association.

 

That compared with 4.53 million tonnes and 4.04 million tonnes exported by Thailand's competitors, India and Vietnam, respectively.

 

(Reporting by Patpicha Tanakasempipat; Editing by Ed Davies)

 

-- © Copyright Reuters 2020-07-22

 

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Last year's rice crop was abysmal due to the drought.

 

Add to that the fact that demand for Thai exports (cars, electronics etc.) will be massively down due to Covid19 and tourism has been devastated, it's going to be double digit GDP shrinkage for sure. Tough times ahead for the Thai economy, unfortunately.

1 hour ago, JonnyF said:

Last year's rice crop was abysmal due to the drought.

 

Add to that the fact that demand for Thai exports (cars, electronics etc.) will be massively down due to Covid19 and tourism has been devastated, it's going to be double digit GDP shrinkage for sure. Tough times ahead for the Thai economy, unfortunately.

Things weathe wise are a bit bleak around here at the moment with poor rainfall.  Most rice farmers are pumping water out of the klongs to keep the rice crops growing.  The knock on effect is if there is not enough rain in the coming months the dry season corn crop will be greatly reduced or not grown. 

do they blame CORONA for that? will they ask 10.000 baht per ton x 1.000.000 from the government as compensation ?

Why dont they do what Joseph did in the Bible and have warehouse's full of rice from 7 good years to use for 7 years of famine? Oh wait they did that but the generals stole it, sold it and used it to persecute their enemies of a duely elected government of the people for the people.....

Probably best. The rice is not the best in the world...

3 hours ago, Scot123 said:

Why dont they do what Joseph did in the Bible and have warehouse's full of rice from 7 good years to use for 7 years of famine? Oh wait they did that but the generals stole it, sold it and used it to persecute their enemies of a duely elected government of the people for the people.....

Yes they did this only rice was stolen, stored improperly so it rotted. So no the generals were not guilty just Yingluck. You can blame the generals of loads of other things but this one is on the Shins. 

 

https://www.reuters.com/article/thailand-rice/two-private-thai-firms-win-bid-to-buy-37000-tonnes-of-rotten-rice-idINL3N13Q2ZD20151201

In the 14 years i have lived here around 80% of the Paddy's around our way have been filled in and built on.   What's left is just a few small area's where Farmers grow for their own family's needs.   What with the way the Farmers have been treated by the greedy Oligarchs and the continuous and worsening drought's, is it any wonder that the generations following are not interested in Farming and would rather sell the Land and move on ?   Been saying it for the last five years; won't be more than a Decade or two before Thailand is importing rice to feed its own people.

19 hours ago, webfact said:

"The new forecast of 6.5 million tonnes is the lowest volume in 20 years."

Just waiting for the wailing to start.... subsidies please !

https://www.aljazeera.com/news/2020/07/demand-slumps-thai-rice-due-drought-pandemic-200721094322066.html