Thailand’s rice exports to exceed 8 mn tonnes this year, despite floods

Despite flooding caused by Typhoon Noru in late September and early October, Thailand’s rice exports are likely to exceed 8 million tonnes this year as as weak baht has helped overseas sales, President of the Thai Rice Exporters Association (TREA) Chookiat Ophaswongse said on Wednesday. The floods resulting from the typhoon had caused some damage to crops, but had not impacted exports, Chookiat said. Thailand, world’s third-largest rice exporter, shipped 6.11 million tonnes of the grain last year.

Thailand can still reach 7.5 million tonnes of rice exports this year and even 8 million tonnes due to the weak baht and India’s increased export tax, Chookiat noted. In September, India, the world’s largest exporter, banned shipments of broken rice and levied a 20% duty on exports on various rice grades. Chookiat said that unless there was a dramatic change in the situation, he expected exports of 8 million tonnes in 2023, too.

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Last month, the association raised its export target to 7.5 million tonnes from 7 million tonnes due to higher output and a weak baht. According data from the US Department of Agriculture, global rice exports totalled 51.63 million tonnes in 2021. India made up 41% of the volume, followed by Vietnam in the second place and Thailand in the third, shipping 6.11 million tonnes of the grain.

Indian exporters rue 20% duty on rice exports

Meanwhile, exporters in India hold that by levying 20% export duty on various types of grain, the government has effectively banned rice exports entirely. The traders fear that they will now lose the crucial price advantage they had in many markets. The levy covers brown and white rice, which account for nearly 60% of the country’s rice exports.

Thailand, Vietnam to raise export prices for rice

Thailand and Vietnam, the world’s second-largest rice exporter, will hold talks to raise export prices for rice, according to reports. Thai Agriculture and Cooperatives Minister Chalermchai Sri-on is scheduled to visit Vietnam on October 6-7 for talks with Vietnamese Agriculture and Rural Development Minister Le Minh Hoan regarding the countries’ agricultural cooperation, including rice export prices, Thai government officials were quoted as saying in media reports.