Thai rice benefits from new policy from Indonesia

On July 31, President of the Thai Rice Exporters Association Charoen Laothamatas said that the country's rice industry is benefiting from Indonesia's increased demand to maintain food security.

Thailand exported 1.2 million tonnes of rice in June, up 78.7% year-on-year. (Source: Bangkok Post)

Rice export value in the first half of this year reached 3.30 billion USD (118.67 billion Baht), with June alone accounting for 644 million USD (23.16 billion Baht).

Charoen attributed the increase in June exports to the Indonesian government’s food security policy. However, Thailand’s rice export outlook for the second half of the year remains uncertain, as the industry will be severely affected if India lifts its ban on white rice exports and enters the global rice market.

According to Mr. Charoen, the immediate outlook for the Thai rice industry remains bleak due to prices. Bangkok should address this by increasing productivity, generating more income for farmers and boosting competitiveness.

The chairman of the Thai Rice Exporters Association raised the issue: "Thai rice is still more expensive than rice from neighboring countries. For example, rice from Vietnam is about 30 USD/ton cheaper than Thailand. This difference is because Bangkok can only produce 400kg of rice/rai, compared to 900kg/rai in Vietnam."

Although demand for rice is rising, Mr. Charoen expects demand to slow down due to increased yields due to abundant rains. He expects Thailand to export 7.5 million tons of rice this year as planned.

Indonesia plans to import 3.6 million tons of rice this year, mainly from Thailand and Vietnam, the Thai Ministry of Commerce reported. Indonesia's state logistics agency Bulog has opened tenders to import about 300,000 tons of rice per month. Bulog expects Jakarta to import 1.5 million tons of Thai rice this year, helping the country reach its 2024 target.

The US Department of Agriculture forecasts global rice production in 2024-2025 to reach 528.17 million tons, up 1.4% from 520.87 million tons in 2023-2024.

The ministry forecasts that rice exports from India, Cambodia, Brazil, Uruguay, Paraguay, Argentina, the European Union (EU), Australia and the United States will increase. However, exports from Thailand, Vietnam, Pakistan, Myanmar, China, Guyana and Türkiye are expected to decrease.

Source: https://baoquocte.vn/gao-thai-lan-huong-loi-nho-chinh-sach-moi-tu-indonesia-280970.html