2020 rice exports put at 7.5 million tonnes
Thai Rice Exporters Association estimated total shipments of 7.5 million tonnes worth $4.2 billion this year, in line with the Commerce Ministry’s target, said Charoen Laothamatas, the association's president.
“Export in 2019 was 7.58 million tonnes, decreasing from 11 million in 2018 and the lowest in six years” he added.
Export of white and jasmine rice also decreased, mainly due to appreciation of the baht, making the Thai rice industry less competitive than its rivals'.
“Buyers are concerned with the baht stability, although the currency has weakened this week” the president added.
Another factor was the preference for soft rice in the market, which Thailand does not currently produce. Besides, China has become another rice exporter.
“Soft rice is now under development, and would be available in the market in the next three or five years” the president said.
Chookiat Ophaswongse, the association honorary president, added that Vietnam has been developing rice varieties continually, especially in soft rice.
“Production cost in Vietnam is lower than Thailand’s, thus its produce are priced lower ” he said.
Moreover, Vietnam has signed an agreement with European Union on rice export. The agreement specified that EU imports Vietnamese rice under a tax-free quota of 80,000 tonnes per year.