Thai rice exports poised to hit 9 million tonnes amid local weather anxieties

Thailand stands on the cusp of a vastly promising 12 months in terms of rice exportation, which, forecasts recommend, might attain up to 9 million tonnes. Making essentially the most of a climate-induced market fervour, the Thai trade gleefully anticipates delivery masses of what’s an integral commodity to many. The increase in demand is believed to be rooted in anxieties about the potential fallout of the El Niño climate phenomenon.
Chookiat Ophaswongse, the honorary president of the Thai Rice Exporters Association, conveyed his optimism, suggesting the industry is primed to export around 4-5 million tonnes of rice in the latter half of this year, this is atop four.1 million tonnes dispatched in the year’s first half. Chookiat said…
“The price of rice has elevated to the best degree in eleven years.”
Specifically, the price of free-on-board Thai white rice has surged to US$510 per tonne, equalling the price of Vietnamese rice. Contrastingly, Indian rice stands slightly cheaper at US$480 per tonne, having previously lagged behind Thai grains by as much as US$100 per tonne.
According to Chookiat, uncertainties concerning El Niño led to notable fears last yr, and this will likely have sparked a worldwide reduction in rice supply. The aftermath was panic shopping for. Self-preservation took priority as numerous nations have sought to bulk up their stocks to mitigate potential risks. Phrases like “rice-importing nations” and “increased stockpiles” grew to become quite widespread.
In response to these business developments, each the Philippines and Indonesia publicly introduced intentions to extend their rice purchases. Indonesia has already added 1 million tonnes to its domestic supply.
An equal degree of concern echoed in Malaysia, domestic manufacturing and inventory dipping have prompted plans to import 1.2 million tonnes of rice. Inevitably, Malaysian rice prices have surged upwards by 10%, and it’s anticipated this hike will inspire additional rice purchases from Thailand.
Meanwhile, the Philippines has secured a colossal 2 million tonnes of rice from Vietnam. The former shipped 4 million tonnes within the first 5 months of the year but has an annual export capacity of 7 million tonnes.
Chookiat also revealed that China had augmented its rice imports from Vietnam, confirming it had begun amassing rice stocks.
Looking again, Thailand exported 7.sixty nine million tonnes of rice final year, a definitive 22% increase from 6.3 million tonnes in 2021. This upward trajectory was also seen in financial phrases: export value inflated by 25.1% to 138 billion baht (US$3.ninety seven billion), marking a 14.6% rise.
Black market positioned Thailand as the second-largest international rice exporter in 2022, second only to India (with exports totalling 21.9 million tonnes). Vietnam ranked third with exports of 6.31 million tonnes.
Significantly, Iraq emerged as the most prominent purchaser of Thai rice, buying 1.6 million tonnes last year – a towering 458% surge from 2021. Other key importers included South Africa with 775,000 tonnes (a marginal drop of two.26% from 2021), China with 750,000 tonnes (up 18.8%), the US with 650,000 tonnes (up thirteen.2%), and Benin with 321,000 tonnes (down 15.3%).
As the world retains a cautious eye on El Niño, Chookiat warned concerning the monitoring of rainfall ranges from July to September. Any dip during this period would pose a direct menace to primary crop rice production, which is heavily reliant on rainfall.
Chookiat estimated that insufficient rainfall could cripple Thai rice production by 10-15% from the standard output level. Given that the usual annual production of the main crop paddy rice is 24 million tonnes and off-season periods produce 8 million tonnes, a tangible hit on production is a probable state of affairs, reported Bangkok Post.
With regard to the domestic scenario, Chookiat said…

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