Linch Pin of Thai Rice Exports Under Fire – Thai Hom Mali Exports Face More Competition
January 3, 2012 (By Oryza News)
Thailand may miss rice export target in 2012 mainly due to high prices as compared to Indian and Viet rice prices. Making matters worse, one area where Thailand has enjoyed more pricing power – fragrant rice – is now under increasing attack as other origins improve their quality and strive to export more fragrant rice, at a steep discount to Thai fragrant rice.
The Thai Exporters Association (TREA) has expressed fears that exports of the country’s famed Hom Mali rice may be harmed due to competing fragrant rice from other Southeast Asian countries gaining acceptance among foreign consumers. In 2011, Vietnam about doubled the amount of fragrant rice it exported to roughly 1 million tons, or about 14% of all rice exports.
Last year, 30% of Thailand’s roughly 11 million tons of rice exports were comprised of fragrant rice. TREA’s honorary president said that major markets for Hom Mali rice such as Hong Kong and Singapore may switch to fragrant varieties from Cambodia and Vietnam in 2012. Besides availability, aroma and taste, it is the price factor that may harm Hom Mali exports. The honorary president said that Viet fragrant rice is quoted around $670 per ton, about 40% less than Thai Hom Mali at around $1,100 per ton. Cambodian fragrant rice is indicated around $800 per ton.
The TREA's president has revealed that Thailand might miss the official target to ship 9 million tons of rice in 2012. The president said that cheaper rice from India and Vietnam is making Thai rice uncompetitive and shrinking Thailand’s share in the international rice export market.
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