Govt defies critics, says it will export 9.5m tonnes of rice

However, the ministry has accepted that the export value would be quite low as the government has mainly focused on upgrading farmers’ incomes through an unreasonable price pledging policy.

"The government will have to shoulder loss from the pledging project in order to boost local rice prices hence rice export value will not be high this year. But we project export volumes will achieve 9.5 million tonnes," said Yanyong Phuangrach, permanent secretary at the ministry.

The ministry’s export projection of 9.5 million tonnes sharply contrasts the record low of 6.5 million predicted by the Thai Rice Exporters Association.

Of the projected exports of 9.5 million tonnes, the ministry is confident that exports under government-to-government deals would reach 3 million tonnes in the second half of this year.

Exports in the second half of the year are expected to reach 5 million, including both from exporters and government-to-government. This included exports to Indonesia of 1.5 million tonnes, 600,000 tonnes to Iraq, 240,000 tonnes to Ivory Coast, 2 million to 2.3 million tonnes to Africa, and 1.5 million tonnes to other markets.

"The government is not worried about losses and exports at lower than market price," said Yanyong.

The association reported on Wednesday that Thailand’s rice export volumes significantly dropped by 45.44 per cent to 3.45 million tonnes year on year in the first half, ranked behind India. This is the first time that the Kingdom has lost the top position. By the end of the year, it is forecast that Thailand’s exports would drop to third place, behind Vietnam.

Yanyong said Thailand still has high capability to supply rice to the world market due to high efficiency in rice production and export.

He also rejected allegations by exporters and academics about low efficiency of the government in managing rice stocks, and the budget for the pledging project. He said the government was capable of managing the rice stocks and ensure that the pledging would continue to promote rice price in the market.

"Academics are like an analog clock, but now it is the digital and 3G periods. They should not rely on old-fashioned thinking about figures only, but look more at the real benefit for the country," said Yanyong.

Manus Soiploy, director-general to the Foreign Trade Department, blamed exporters for causing difficulties in exports, saying that foreigners have now suspended their plan to order rice from Thailand as they expected the government to release huge stockpiles soon.

Previously, the ministry had planned to ask for Cabinet approval to gradually release 1 million tonnes of rice from the stockpiles, after having already released 700,000 tonnes since early June this year.

Meanwhile, Chookiat Ophaswongse, president of the Thai Rice Exporters Association, said exporters had only reported the facts.

"Exporters do not intend to dump rice prices in the market but the much lower export prices from major export rivals particularly India and Vietnam have prompted Thai exporters to compete with them," Chookiat.

Chookiat added that the government’s projected 9.5 million tonnes are unattainable because India and Vietnam have a competitive edge. Africa’s markets will not import 2 million tonnes as expected by the government, he argued.