Off-season rice down due to drought

[Thaivisa News]

Bangkok: - Thailand’s rice production for this year’s two off-season crops may drop 30 to 50 per cent due to drought impacting on the 2015 export target of 10 million tons.

“Thailand will likely retain the world’s rice market share as No 1 exporter although drought would intensify price competitiveness,” said ChukiatOpaswongkarn, president of Thai Rice Exporters Association.

Based on the recent survey, the first off-season paddy will decrease by 30 per cent and the second crop is projected to drop by 40 to 50 per cent.

The overall off-season production has been revised downward from 3 - 4 million tons to 1-2 million tons, Chukiat said.

The persistence of drought beyond next month might cut down the annual rice production, causing the increase in paddy price, he said.

The price increase has positive and negative effects, he said, noting that this is a boon for the government’s rice stockpile accumulated from the money –losing rice pledging scheme but would erode the competitiveness of Thai rice exports.

He called for the authorities to start mapping out the measures to assist Thai rice exporters in keeping the world’s market share.

Commerce Minister General ChatchaiSarikulya said his ministry has already launched the field survey to assess the drought impacts on paddy production.

The survey is designed for relief measures for farmers who have to cut down the cultivation areas, he said.

The Commerce Ministry will also check on the progress report on rice exports, particularly in the wake of signing a government-to-government agreement for one million tons rice sale with China, he said.