India may be Thailand's next rival in rice exports

[webfact]

India may be Thailand's next rival in rice exports

BANGKOK, 11 May 2015, (NNT) -The Thai Chamber of Commerce Council Chairman, Chukiat Opaswong, has projected that the Kingdom will be able to export only 8.5 million tons of rice this year, a sharp drop from last year’s 11 million tons. He said India may become Thailand’s next rival in rice exports, as the nation starts taking an increased share of the African market.

He said several nations have already implemented price slashing schemes to boost rice exports, especially India, leading to fierce competition. Indian rice, in particular, is 40 dollars per ton cheaper than that of Thailand’s.

Thailand exported 2.6 million tons of rice during the first four months of this year, he said, adding India’s figure was 2.5 million tons in the same period.

He said the stronger baht may be contributing to the high rice price. Thailand’s rice is being priced at 385 dollars per ton, he indicated, pointing out Vietnam’s product is being sold at 355-360 dollars a ton, and India is at 360 dollars per ton.


-- NNT 2015-05-11

[ratcatcher]

"He said the stronger baht may be contributing to the high rice price."

An astute man, for sure.

[Always18]

Thailand certainly ought to be concerned about competition from India as there's really no comparison to be made between Thai rice and Basmati rice.

New markets will find that the latter is in a class of it's own and, in my view, the finest and most flavourful rice to be had from anywhere on the planet..........................

[marko kok prong]

Totally agree,Basmati is a much tastier rice .

[trogers]

For sure! They have the monsoon and the manpower of the poor.

[lujanit]

I smell a baht devaluation. To much talk in the media about the high value of the baht compared to other currencies.

[NextStationBangkok]

More than comparing the taste and quality of Thai Mali rice and Basmati Rice, for African market, they needed cheapest priced rice (Thai white rice) with the raising cost of living. And more African are afford to buy rice due to their economic improvement. Similar quality of Thai White rice, India is selling for half the price in African markets. More over India has lot of agreements with Arab countries for Food for Oil agreements, for those countries having sanctions with International trade like Iran, Libya etc.

The main competition in other premium markets are Thai Mali rice and Basmati rice, of course Basmati is twice the price of Thai Mali rice in fact, but Basmati grains have a special quality that makes rice bigger and smells better. Those customer prefer to eat small quantity rice like Europeans and American, prefers Basmati better than Thai mali.

Pakistan also one of the largest producers of Basmati rice, and they have similar premium quality as India has, because the Basmati is grown between India and Pakistan in the divided region of Punjab, grown with the same river passes both countries.

The potential of growing rice in Thailand is a lot due to plenty of water availability, but the mismanagement and monopoly companies, government policies increased the cost of the rice, which makes less competitive to India and Vietnam.

[noosard]

Who was this writer's maths teacher

[fgmr]

India should be looking to feed its own population and ensure freedom from hunger for ALL it's population before considering exporting. Does the Federal Government of India really need the revenue from rice exports? Or is it more likely that with more freedom exporters are exploiting the market to fill their own pockets at the expense of the Indian farmer. How many farmers have committed suicide in India over the last 12 months?

[ezzra]

Totally agree,Basmati is a much tastier rice .

Not only tastier, basmati rice is better looking as well as much better on the glycaemic chart and healthier

for you...

[Oziex1]

Thailand, innovate, compete and modernise the agricultural sector.

Basmati has a name and deservedly so it's very nice, how do we know about it, a successful marketing campaign no doubt.

[elgordo38]

India should be looking to feed its own population and ensure freedom from hunger for ALL it's population before considering exporting. Does the Federal Government of India really need the revenue from rice exports? Or is it more likely that with more freedom exporters are exploiting the market to fill their own pockets at the expense of the Indian farmer. How many farmers have committed suicide in India over the last 12 months?

Irregardless its always about the money honey. The poor matter little. The farmer is at the bottom the middleman takes no chances and makes all the money and cares little for anyone else. Its called Capitalism with a Capital C. We are all being marginalized for the sake of the greater good mainly the rich. Its called Exploitation with a Capital E. It all a matter of DNA and the rich have had their DNA reprogrammed where the M is the only thing that matters. Everybody should know what M stands for here is a clue Profit with a P.

[elgordo38]

For sure! They have the monsoon and the manpower of the poor.

Manpower is all the poor qualify for. India feed its own never happen. The old poor must make way for the younger stronger bodies the rich need to keep their waterwheel of profit turning. Its all supply and demand. Getting rid of the poor also cuts down on social obligations like pensions and medical care. Its the new world order.

[Alwyn]

For sure! They have the monsoon and the manpower of the poor.

I know! And Thailand's rice paddies are full of rich people working! Thailand also doesn't have a monsoon season does it.. Just the rainy season. <sigh>

[Baerboxer]

Thailand certainly ought to be concerned about competition from India as there's really no comparison to be made between Thai rice and Basmati rice.

New markets will find that the latter is in a class of it's own and, in my view, the finest and most flavourful rice to be had from anywhere on the planet..........................

A matter of personal taste. Top quality fragrant Thai rice is in a class of its own and far in front of Basmati in my opinion, and so is Japanese rice.

However, the countries in Africa may not be able to afford the luxury of choice and have to take the best they can afford.

[tifino]

just be wary about where (some of) the Indian Rice 'really' comes from.

Missus has also this week started complaining her Basmati dishes don't taste quite right

- so I checked out the BarCodes...

- and found these bags of Made-In-India Rice were barcoded as originating in China!!!

http://www.food-info.net/uk/qa/qa-fp121.htm

Edited May 11, 2015 by tifino

[Equalizer]

just be wary about where (some of) the Indian Rice 'really' comes from.

Missus has also this week started complaining her Basmati dishes don't taste quite right

- so I checked out the BarCodes...

- and found these bags of Made-In-India Rice were barcoded as originating in China!!!

http://www.food-info.net/uk/qa/qa-fp121.htm

The first 2 (sometimes 3) digits, which are called the “flag”, indicate in what country the bar code was issued. This “flag” does not tell you, however, in what country the product was produced.

[tifino]

well, there's only one other way....

http://nwrage.org/content/india-maps-dna-basmati-rice-protect-it-west

[mjakob007]

Thailand certainly ought to be concerned about competition from India as there's really no comparison to be made between Thai rice and Basmati rice.

New markets will find that the latter is in a class of it's own and, in my view, the finest and most flavourful rice to be had from anywhere on the planet..........................

1. Basmati is not affordable and hence wont compete with thai rice heading to Africa.

2. price of rice alone is not determining factor for buyers, shipping costs & port costs constitute equal if not more than the price paid to farmers in india and thailand.

3. nigeria is the worlds largest rice importing nation in the world,w ith some 180mill population. they will be forced to farm thier own rice (no import) due to pressure on their economy thanks to poor oil prices. its only a matter of time.

4. thailand would need to diversify further, not just rice

[janpharma]

Not only India, Vietnam and Cambodja also already offer "Hom Mali" this is best quality of Thai rice at the market, but they offer at 60% of the Thai price...Thailand ready for ASEAN??? ...I don't think so...

[Srikcir]

It doesn't matter much at what price Thai rice sells for anywhere in the world if the farmers can't get a decent return on their investment. Thailand needs to bring down the cost of production. Thai farmers have the lowest profit margin the SE Asia.

Thus far, the government has tried to prop up farmer's returns with cash subsidies but not to satifaction of the farmers. With a stagnant GDP growth rate and possible deflation, the government's generousity will be limited for the remainder of 2015.

[Usual Suspect]

India encourage better production to all farmers...they have regular 'workshops'/village meetings from agricultural companies, & even from the government to show/demonstate new techniques/practices that can increase production.

India also has more mechanisation..allowing imports of modern design machines..again it tries to help the farmers produce a better yielding crop.

Unlike Thailand who due to import tax restrictions are stuck in the middles ages..Issan farmers do not even know what a seed-drill looks like!

(what year did Jethro Tull invent the seed metering system on his drill..?)

But if this country produced more rice, the mill-owners would make a greater % disappear..so it would be same-same... TiT.

[Thai at Heart]

India encourage better production to all farmers...they have regular 'workshops'/village meetings from agricultural companies, & even from the government to show/demonstate new techniques/practices that can increase production.

India also has more mechanisation..allowing imports of modern design machines..again it tries to help the farmers produce a better yielding crop.

Unlike Thailand who due to import tax restrictions are stuck in the middles ages..Issan farmers do not even know what a seed-drill looks like!

(what year did Jethro Tull invent the seed metering system on his drill..?)

But if this country produced more rice, the mill-owners would make a greater % disappear..so it would be same-same... TiT.

Thailand has been providing agricultural extension training for decades.

The farmers still burn the paddies.

[cookee68]

That's a big savings over a few million tonnes, no wonder India is in competition, they out produce Thailand in rice, only they keep back more for them selves