Thailand’s rice exports expected to drop 14.4% amid global competition

[webfact]

 

A projected drop of 14.4% in Thailand’s rice exports is anticipated for this year, due to a combination of reduced production and increased global competition, as reported by the Foreign Trade Department. The department’s director-general, Ronnarong Phoolpipat, revealed that the estimate of 7.5 million tonnes of rice exports this year was jointly made with the Thai Rice Exporters Association.

 

This forecast takes into account several influences such as the expected 5.87% decrease in rice production year-on-year, attributable to the El Niño weather conditions. Additionally, the global rice market is set to become more competitive due to heightened production rates.

 

Ronnarong Phoolpipat also indicated a potential decline in import demand from trade partners, as rice consumption trends are decreasing in China, Japan and Malaysia. This might lead to intense price competition. There are also suggestions that Indonesia may import less rice this year due to substantial stocks remaining from 2023.

Simultaneously, China is ramping up its rice production, transitioning from being a significant rice importer to a self-reliant producer. This shift could potentially affect Thailand’s future rice exports.

 

by Alex Morgan

Photo courtesy of iStock

 

Full story: The Thaiger 2024-02-02

 

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[flyingtlger]

Thailand is losing to India....

[mania]

This is the way a free market works & is no different than what happened to Hawaii years ago. They were #1 Sugar growers with C&H Sugar

Then Brazil, Vietnam, Mexico all started to grow it cheaper

 

Well in Thailand they kind of helped that along by being silly during Yinglucks time with the thinking they could pay farmers above market prices. They would just warehouse the excess rice & wait for prices to rise.

 

Well we know how that worked out 😉 Vietnam said what? you need rice?? Coming right up

Next the warehoused rice of course deteriorated waiting for prices to rise & the rest was the history the Junta used to oust her

[edwinchester]

Last year's drought hit production hard. All our neighbours have had a reduced crop, some by as much as 30%. Now they've been told the canals won't be opened for the foreseeable future as there's not enough water in the reservoirs. Looks like some rice farmer's will be lucky to get half of their usual money.

[fondue zoo]

2 hours ago, webfact said:

as rice consumption trends are decreasing in China, Japan and Malaysia

 

Culturally?

[Burma Bill]

3 hours ago, webfact said:

A projected drop of 14.4% in Thailand’s rice exports is anticipated for this year, due to a combination of reduced production and increased global competition,

 

I am not surprised when Thai Hom Mali rice was knocked from top to fourth spot by Vietnamese and Cambodian Fragrant rice, also Indian Basmati rice.

Thai rice farmers, pull your socks up and produce better quality rice!!

 

For reference (wikipedia):

 

In 2023, Cambodia exported more than 656,000 tons of milled rice worth $466 million, marking a three percent growth in volume and 13 percent in value compared with 2022.

 

Revenue in the (Cambodian) Rice market amounts to US$0.42bn in 2024. The market is expected to grow annually by 6.48% (CAGR 2024-2028)

 

[Srikcir]

4 hours ago, flyingtlger said:

Thailand is losing to India....

Not currently. In fact Thailand expected higher exports due to India.

Govt Extends Export Ban On De-Oiled Rice Ban Till March 2024

"Export prohibition of de-oiled rice bran is extended till March 31, 2024," the directorate general of foreign trade has said in a notification.

https://business.outlookindia.com/news/govt-extends-export-ban-on-de-oiled-rice-ban-till-march-2024