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Thai rice exports to benefit from increased demand, struggling competitors

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Thai rice exports to benefit from increased demand, struggling competitors

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BANGKOK, 24 June 2016 (NNT) - The Ministry of Commerce has forecast rice exports to rise during the second half of this year, reaching its annual output target of 9.5 million tons.

Commerce Minister Apiradi Tantraporn said the expected increase is due to continuous demand in both domestic and foreign markets, such as the government-to-government deal with China for one million tons of rice, which commences in August. Other notable rice importers, such as the Philippines and Indonesia, will be seeking additional G2G rice procurement.

Meanwhile, India, one of Thailand’s main competitors globally, is currently suffering from drought. The country has shifted to storing rice for domestic consumption, compromising its export capabilities.

Due to these factors, the Ministry of Commerce has concluded that Thailand will be able to achieve its annual output target of 9.5 million tons.

In the first half of 2016, Thailand exported 4.71 million tons of rice worth 1.55 billion dollars or 73.90 billion baht. The amount marks an 11.42% increase in rice exports and a 7.81% increase in export value, compared to the same period last year.

Thailand's major export markets consist of Africa, Asia, the Americas and Europe.

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Didnt the Thai crop suffer from the drought as well? any way good luck with the rice sales free from any crazy corrupt schemes.

"Meanwhile, India, one of Thailand’s main competitors globally, is currently suffering from drought."

And what has Thailand been suffering from for the past 2 years?

I call bs on this. They will not reach their annual output target of 9.5 million tons unless they count the rice that has already been sold from the rice buying scheme as well as what's in the warehouses from the same scheme.

Very good rice.

I am no fan of Yingluck, but to be fair if revenue increases from the stored rice it should be subtracted from her bill.

Wel it looks like the price has declined, increase in export volume 11.42% but increase in export value 7.81%. Sounds like a significant discount.

Another guess, erm, wet finger in the air. erm look in the crystal ball. erm look at the tealeaves prediction.

Good innit?

W

I am no fan of Yingluck, but to be fair if revenue increases from the stored rice it should be subtracted from her bill.

If there's a profit from the sale, will it got to Yingluck?

From May 2012 to May 2014, the world market price for 5% broken Thai rice went from 615 USD per metric ton, to about 400 USD. Hence some of the famous losses in the rice scheme.

Since then the price has declined to 350 and then recovered to 400.

Cautious optimism regarding price would be reasonable.

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