Rice exports to decline in 2008

Rice exports to decline in 2008

Thailand will do well to export 8.7 million tonnes of rice this year, down from an unexpectedly high 9.4 million tonnes in 2007 because of supply constraints, the Rice Exporters Association said yesterday.

But prices are expected to surge and remain high throughout the year, said president Chookiat Ophaswongse.

''After discussing with the government, we expect that we would do well at 8.7 million tonnes in 2008 as supply is limited,'' he said.

The government had forecast exports of 8.5 million tonnes in 2007, up from 7.5 million in 2006, but actual exports went much higher as Thailand filled a gap left by other countries.

''The 9.4 million tonnes was beyond our expectations. It is because India and Vietnam halted their exports while we increased supply from government stocks,'' Mr Chookiat said.

Thailand produces around 29 million tonnes of paddy annually, equivalent to 18 million tonnes of milled rice, of which around 11 million tonnes is for domestic consumption, according to association data. The authorities may again choose to draw rice from official stocks for export, although stocks were run down last year to satisfy market demand after India and Vietnam banned exports. REUTERS