Total Thai rice exports for the first quarter of this year have dropped by 30%, and by 53% for 15% white rice year-on-year, raising concerns among Thai rice exporters that the country may lose its position as the world’s second largest rice exporter, after India, to Vietnam.
Chukiat Opaswongse, honorary president of the Thai Rice Exporters Association, said Thailand exported only 2.1 million tonnes of rice in the first quarter, compared to 2.4 million tonnes by India and 2.3 million tonnes by Vietnam.
He pointed out that, even though Thai rice has dropped to about US$400/tonne, Indian rice is about US$40 cheaper, prompting buyers from South Africa, Malaysia and the Philippines to turn to India as their supplier.
India is expected to export more than 20 million tonnes of rice this year, while Thailand is expected to export only 7.5 million, said Chukiat adding, however, that the Thai Rice Exporters Association may revise this figure in the middle of the year.
He took note of the 36% reciprocal tariffs imposed on Thai exports to the US market, including rice, saying that rice importers in the US may take advantage of the 90-day pause in the imposition of the tariffs by increasing imports of Hom Mali rice from Thailand to stockpile.
Annually, the US imports about 1.3 million tonnes of fragrant rice from various countries, including about 630,000 tonnes Hom Mali from Thailand.
In the first three months of this year, Thailand exported over 200,000 tonnes of Hom Mali to the US, at an average price of US$1,000/tonne. The price will jump to US$1,200-US$ 1,300/tonne if the tariffs come into force, on top of the 10% basic tax increase, which will make Thai rice less competitive in the US market, said Chukiat.
Meanwhile, the association president, Charoen Laothammatas, said Thai rice exporters are also concerned about the shipping costs, which will rise by US$6/tonne by October.
