India’s Export Ban on Rice Boosts Optimism for Thai Prices
Published on: January 16, 2024.
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Ongoing Ban on Indian White Rice Exports Boosts Thai Rice Prices
Thai rice exporters are optimistic about the future as the ban on white rice exports in India continues. Chookiat Ophaswongse, the honorary president of the Thai Rice Exporters Association, believes that this ban will help keep Thai rice prices high in the first half of this year. Global market prices are expected to remain around US$600 per tonne, a rate not seen in over a decade, due to strong demand from various countries.
Indonesia is also expected to continue importing rice this year, although the quantity may be lower than in previous years. Last year, Indonesia imported nearly four million tonnes of rice from several nations, including Thailand, Vietnam, Pakistan, and Myanmar.
Rice exports from Thailand last year exceeded earlier projections, reaching a total of 8.8-8.9 million tonnes. This increase in exports was driven by higher prices, resulting in an estimated value of 180 billion baht (US$5 billion).
In November 2022, rice exports from Thailand surged to one million tonnes, valued at 23 billion baht (US$658 million). This marked a 19.9% increase in volume and a 23.3% increase in value compared to October 2022.
The surge in exports was attributed to increased shipments of white and hom mali fragrant rice, as major importers rushed to secure supplies amid soaring global rice prices. White rice prices reached a 15-year high, according to the Bangkok Post.
The Thai Rice Exporters Association predicts that rice export volume in the previous month was around 900,000 tonnes. This is because exporters are committed to delivering a significant quantity of rice, and there is strong demand from key importers in Asia, such as Indonesia, Malaysia, the Philippines, and Japan.
In addition to Asian markets, major markets in Africa, the Middle East, and the Americas are expected to show strong demand for white rice, glutinous rice, and fragrant rice. This is to compensate for reduced production in those countries and to build reserves for the first quarter of 2024.
Chookiat reassured that Thailand has sufficient rice supply and competitive prices, making Thai rice a preferred choice for importers.
As of December 27 last year, the price of Thai white rice 5% was quoted at US$659 (23,032 baht) per tonne. In comparison, prices from Vietnam and Pakistan ranged from US$653-657 (22,822-22,962 baht) and US$593-597 (20,725-20,865 baht) per tonne, respectively.
The Thai Rice Exporters Association anticipates Thailand shipping around 7.5 million tonnes of rice this year. The potential impact of the El Niño weather phenomenon on global rice production remains uncertain and will be closely monitored.
Source: The Thaiger
