Glut expected as US, European importers cancel orders for Thai rice
The Thai Rice Exporters Association has voiced concerns about an oversupply of jasmine rice in local markets now that many orders from the US and Europe have been cancelled due to high freight costs.
The Thai Rice Exporters Association reported on Saturday the Customs Department’s data of Thai rice exports. The exports from January to August valued at 58,684 million baht (US$1,906.7 million), with a volume of 3,178,887 tonnes. The export volume and value decreased by 14.0 per cent and 23.3 per cent respectively, compared to the same period in 2020.
The volume and value of Thai rice exports in August had increased from July. The export volume of white rice in August was 274,377 tonnes, increased by 101 per cent compared to the previous month. Meanwhile, parboiled rice exports amounted to 161,925 tonnes, dropped by 7.7 per cent from July. The jasmine rice exportation in August rose by 5.3 per cent from the previous month, which amounted to 78,823 tonnes.
The association expects more than 700,000 tonnes of rice exportation in September as there are constant demands of white rice and parboiled rice for the festive season at the end of the year among international markets, including Africa, the Middle East, and Asia.
However, the exports of jasmine rice have not yet returned to normal, despite the considerable dropping price, as there have been some logistical problems in The US and Europe shipping routes, where freight rates are at a record high, the Thai Rice Exporters Association added.