Shippers optimistic about Thai rice price levels
Published on: January 16, 2024.
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Rice Exporters Optimistic as Indian Ban Boosts Thai Prices
Thai rice exporters are optimistic about maintaining relatively high prices in the first half of this year as long as India continues to ban white rice exports. The global market is expected to see prices around $600 per tonne, the highest in over a decade, due to robust demand from various countries.
Thailand, Vietnam, and Pakistan are the main rice-exporting countries in Asia. Chookiat Ophaswongse, honorary president of the Thai Rice Exporters Association, also predicts that Indonesia will continue its rice imports this year, although possibly in smaller quantities compared to the previous year.
Rice exports in 2023 are estimated to have reached 8.8-8.9 million tonnes, surpassing the initial projection of 8.5 million tonnes. The value of these exports is estimated to be around 180 billion baht as prices increased. In November 2022 alone, rice exports reached 1 million tonnes, valued at 23.0 billion baht.
Strong demand for white rice, glutinous rice, and fragrant rice is expected from key importers in Asia, such as Indonesia, Malaysia, the Philippines, and Japan. Major markets in Africa, the Middle East, and the Americas are also anticipated to have high demand to compensate for reduced production in those countries.
Thailand remains competitive in terms of price, and its rice supply is sufficient. As of December 27, 2023, the price of Thai white rice 5% was quoted at $659 per tonne. The prices from Vietnam and Pakistan ranged from $653-657 and $593-597 per tonne, respectively. The price of Thai parboiled rice was $659 per tonne, while the prices for parboiled rice from India and Pakistan were in the range of $513-517 and $546-550 per tonne, respectively.
The Thai Rice Exporters Association forecasts that Thailand will ship around 7.5 million tonnes of rice this year. There is a possibility that India may reverse its ban on rice exports in the second half, but uncertainties, such as the impact of the El Niño weather phenomenon on global rice production, will be monitored.
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