Rice export target seen as safe despite floods
THE widespread floods in the Northeast could well push up prices in the domestic market but are not expected to derail the country’s export target, said Commerce Minister Apiradi Tantraporn, pointing to strong global demand. The country is continuing to receive rice export orders from companies and governments, with such sales expected to reach 11 million tonnes this year, the Commerce Ministry s
Exports in the first seven months of this year stood at 6.3 million tonnes, up 16.03 per cent year on year. By value, the Bt93.4 billion fetched marked an increase of 8.86 per cent year on year.
A preliminary estimate by Kasikorn Research Centre puts losses caused by the floods in the Isaan region at Bt15.725 billion, or 0.1 per cent of gross domestic product. The estimate does not take into account the damage to properties.
In another key export sector, the Commerce Ministry yesterday set up a matchmaking meeting between importers and local producers in the rubber industry. The ministry believes the event will generate orders with a trading value of more than Bt15 billion.
Big players
Among the big players taking part in the event were China’s Qingdao Doublestar Co, Qingdao Sentury Tire Co Ltd and Guangzhou Sino Rubber Co Ltd, along with Iran's Barez Industrial Group and Vietnam’s The Southern Rubber Industry.
According to Thai Hua Rubber Public Co marketing manager Korakod Kittipol, the rubber price in the second half will trend upwards to between Bt60 and Bt70 a kilogramme from the current Bt52 as global demand picks and a supply squeeze plays out from the effects of the Northeastern floods. The floods have cut output from the region by 30 per cent.
Thailand is the world's largest rubber exporter, with China accounting for 40 per cent of the sales.
Rubber exports in June came to Bt14.3 billion, up 22.8 per cent year on year. For the first six months of the year, they totalled Bt113 billion, up 55.1 per cent. Exports of rubber products for that month were Bt28.7 billion, a jump of 38.7 per cent. For the first half, sales of these products came to Bt170 billion, up 53.2 per cent year on year.
