2020 Thai rice exports may hit 20-year low
BANGKOK(NNT) – With the strong Thai baht, and the lack of development, Thailand was only able to export 3 million tons of rice in the first half of 2020. The Thai Rice Exporters Association has projected a grim outlook, reporting that the overall Thai rice export quantity this year will be just 6.5 million tons, the lowest in 20 years.
The Thai Rice Exporters Association’s (TREA) President Pol Lt Charoen Laothamatas, said today that this is a very difficult year for Thai rice exports, with the export quantity in the first seven months of this year at a negative 32.7 percent, or only 3.14 million tons, with a gross value of 66 billion baht.
This figure has resulted in Thailand becoming the world’s third largest rice exporter behind India and Vietnam, showing the decrease in competitiveness, due to drought disasters in 2018-2019 which have already wiped out 20 percent of the produce, resulting in an increase in Thai rice pricing of 30-80 U.S. dollars per ton more than its competitors.
According to the TREA president, Thailand has also failed to develop a soft grain variety of rice which is currently in global demand, while the COVID-19 pandemic has caused disruptions to the market, with panic buying and obstacles with export clearances.
Because of these conditions, the TREA has further downgraded its 2020 annual rice export figure to 6.5 million tons, at a total value of 130 billion baht. This estimate is lower than the previous expectation of 7.5 million tons.
The TREA president said a strategy to develop a soft grain rice variety must be urgently pursued, as well as a reduction in manufacturing costs which are higher than the competitors, along with research into rice varieties that are palatable to broader markets. He has also asked the new economic ministers to take urgent measures to solve the currency crisis.