Rice exports are expected to remain depressed throughout first quarter

[webfact]

Rice exports are expected to remain depressed throughout first quarter



BANGKOK: -- Rice exports for the month of February have dropped to about 700,000 tonnes from January’s 1.2 million tonnes as Thai rice exporters are reluctant to export to some traditional customers for fear that they may default in payments.

Lack of government-to-government rice deals and the absence of new rice deals from the Philippines for February also contributed to rice export slump.

Mr Chukiat Opaswongse, honorary president of Thai Rice Exporters Association, said that Thai exporters were reluctant to take orders from some customers such as Nigeria because oil price slump has sapped the value of Nigerian currency from 120 Naira per one US dollar to 400 Naira.

He predicted that rice exports would remain depressed throughout the first quarter and would start to recover in the second quarter.

Meanwhile, an informed rice exporting source said some rice exporters are now experiencing liquidity problem and might fold up their business because of the rice export slump especially the markets in China and Africa due to cut-throat competition from other rice exporters and payment defaults from African customers.

Some rice exporters have cut costs by trimming staff, lowering rice in storage and cutting expenditure in order to remain afloat.

Source: http://englishnews.thaipbs.or.th/content/155042


-- Thai PBS 2016-03-15

[leeneeds]

Having the Iranian delegation here last week, i am sure there is an opening just around the corner for rice export,

the Thai position on exchange rate is in their favour at 1 baht = 862 rial,

as the confines come down and the

exports roll out of Iran the exchange rate will fall, getting a good

deal now or exchange on goods will require dillegent follow up

and dialogue, That will see a good out come for Thailand's RICE

[Hawk]

Rice exports are expected to remain depressed throughout first quarter

and throughout second, third and fourth quarter.

[Denim]

Might need some of that rice locally pretty soon if the drought continues. Just driven across central Thailand and everywhere is parched and brown. Very little planting going on.

[Srikcir]

rice export slump

This was actually planned by the Prayut government with the objective of deliberating lowering supplies to cause prices to rise.

Prime Minister Prayut ordered rice production to be capped at 25 million tons this year (vs 31.2 million last year!) to prevent an oversupply of the crop. The Commerce Ministry has budgeted Bt10 billion for measures (more subsidies and soft loans?) to give farmers incentive to convert their rice fields to other crops.

The downside for the government is that it might lose its title as the world's rice exporter champion. The junta was very jubilant with regaining the title, blaming Yingluck with losing that title. But with the upcoming draft charter referendum and elections next year, the military might not tolerate any loss of face to lose the title and reverse its rice strategy - again.

[Eric Loh]

The Commerce Minister should be sacked for lots of reason including sitting on his behind and not concluding more G-G sales. He is not working hard enough to visit and sell overseas. This is opportune time to close deal when India is cutting down 20% of their export and Vietnam production is reduce due to drought while Thailand has plentiful stock in its warehouse. No reason not to do well this year unless the Commerce Minister not up to the task.

[GOLDBUGGY]

I would make a deal with Nigeria. Sure they are cash strapped right now because of the low oil price but Thailand has to import oil also. So why not make a trade of Rice for Oil and both win. I think it is also a good way to establish a future faithful customer as well.

[djjamie]

I look forward to rice not being in the news anymore. All it does is remind me of bad time.

I am sure the majority that protested would agree.